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>> I'm looking at shares of E Toro Group.

They're lower today, actually having the

biggest decline ever, down about 13%.

This after the fintech company reported

revenue from crypto assets for the

second quarter that missed the average

analyst estimate. Also big news, it

announced to buy Trade Zero based in

Brooklyn for up to $231 million. We've

got with us Yoni Assia, the CEO of E

Toro. He's back with us here in the

Bloomberg Business Week studio. So, the

numbers you were saying you had a good

quarter and this is an acquisition that

that you think is is a right the right

move obviously at the time. What's the

market getting wrong about this?

>> Well, uh you know, I can't control the

markets. I can control the business. Uh

Q2 was another beat quarter. Uh great 9%

uh growth year-over-year of both uh

topline and bottom line. 18% uh

exceeding actually market expectations

of funded accounts. Huge roadmap coming

in uh across AI in the company. We

actually released uh a new app which is

taking the old app and rewritten 100%

with AI with AI focus and center around

Tory AI agent which is the Gro frontier

model and uh we were talking now about

Denip Patone from Trade Zero and the

team a great team joining us here in the

US to lead it to Toro uh in the US with

the trade zero acquisition.

>> Yeah, let's talk about the trade zero

acquisition. Dan's been on our program.

I used to speak to him all the time just

a few years ago. Uh so certainly a

familiar name to our audience. Why buy

Trade Zero rather than build something

internally? Like what does bringing on

Trade Zero do for E Toro that you

couldn't offer US customers before?

>> So when you look at our business, the

vast majority of our business is outside

the US. We have a huge franchise Europe,

UK, uh Australia, Singapore, Abu Dhabi,

uh and the US a bit got left behind sort

of the rest of the world for us where

the big part of the business is. Uh what

this brings is one a great team based

here in Brooklyn uh uh in the US with a

significant also franchise $80 million

revenues uh and a lot of knowledge and

experience in US capital markets

infrastructure. So a lot of the great

products that we actually have outside

the US which include leverage stock

trading uh long short uh on top of long

short trading we actually created

quantitative smart portfolios which

create hedge fund like strategies uh

market neutral strategies outside the

US. So all of these products operate and

work for it outside the US. Uh and we

believe that together with trade zero we

can actually bring all of these products

including futures trading which is a lot

of our customers were trading oil, gold,

silver during Q1, Q uh during Q4 Q1. Uh

so all of these products will now be

enabled to our customers through the

integration with Trade Zero.

>> Yeah. How are you planning to kind of

differ your approach when it comes to

dealing with your international clients?

Because you know I lived in London for

almost 10 years and the average retail

investor there tends to be more

conservative. they tend to prefer

physical assets whereas US investors are

really just very much into this and so

yeah how would you kind of differ the

approach uh now that we're looking at a

broader base of international clients

>> so I I think this actually shows the

huge opportunity that we have right so

it has been hugely successful outside

the US and places like Germany Spanish

France Italy the UK uh across multiple

by the way both geographies and products

247 trading of both stocks from 26

different capital markets of

commodities, indices, currencies as well

as investing, copying the top trades all

around the world. We actually feel our

products have a huge untapped market

here in the US. uh but until 2025 until

the IPO basically we just took a step

back waited actually for also the crypto

environment to be the right environment

here in the US and together with a trade

zero acquisition we were going to double

down on the US market introducing our US

customers and US customers to basically

the global community and the collective

intelligence uh in it Toro

>> you mentioned AI and one thing that

we're increasingly hearing more about is

agentic trading uh there was a great

piece in Bloomberg just last week uh a

big take. Everybody should check it out

if they haven't already about the way

that some retail traders are are

harnessing this technology. ETO is

allowing customers to use AI agents to

trade autonomously, but that's within

certain defined parameters. Give us an

update on adoption and activity that

you're seeing thus far. So, uh first of

all, just yesterday uh we launched uh an

official connector to Grock. So, we have

a great partnership with SpaceX. You can

actually go now to Grock and click uh

search for it Toro connect your e Toro

account click uh it opens basically an e

Toro single signon and then Gro suddenly

has visibility into your entire

portfolio into the portfolio of all of

the rest of the traders in it Toro and

into the X feed. So you can ask

something like uh uh look at my port

look at my portfolio look at my expost

tell me what I'm missing uh in my

portfolio. Now we've launched Tori our

own AI agent uh a while back which is

also based on grock. We launched also

now claude MCPS and we are seeing more

and more users are actually connecting

AI. There was one missing piece which we

launched about two months ago which is

sub accounts or we called it agent

portfolios. A lot of people including

myself were afraid to connect their

entire account into AI. Uh now you can

actually connect it just to a sub

account to an agent portfolio and say

let's say I have $100,000 in my

portfolio. I want $5,000 invested and I

want this now AI agent to manage my

portfolio autonomously. Now the

beautiful thing about AI agent is they

never sleep. Uh you can train them

basically on everything. My, by the way,

AI agent uh goes every day to

universities across the globe, downloads

research papers on behavioral economics,

connects the data in it Toro and runs

back tests uh uh on on on actual

proprietary data of it Toro. So we're

seeing things that up until 2 years ago

only people in places like you know

Renaissance and Millennium could do.

Suddenly we're doing it with our own

quants and we're building those tools

for our customers to run basically

quantitative trading and agentic trading

as well. I I believe this is just the

beginning of that and that is going to

actually surpass the amount of trading

activity of people on it Toro by the end

of next year.

>> Wow. Okay.

>> Yeah. All right. Well, let's talk about

prediction markets as well because

that's another growth area for a lot of

companies like E Toro uh surging in

popularity. what sort of opportunity

does that present for your company

moving forward?

>> So, uh we announced another acquisition

uh in Q2 which is Zeno. It's a

non-custodial wallet uh outside in the

US. It's a it's a great opportunity.

It's a regulated market uh outside the

US. A lot of the prediction markets

actually operate in the DeFi world uh in

non-custodial wallets. Uh Zeno uh is a

firm actually run by a great founder

that uh was actually a VC that I pitched

DTORo to 20 years ago. Um and and now

sort of uh working together, we've

launched prediction markets in a DeFi

model uh in a non-custodial wallet. It

took us, by the way, 2 weeks from uh

closing the acquisition to actually

launch the SSO connector uh uh to

basically the non-custodial wallet. So

you can transfer money seamlessly from

basically your Toro account into a

non-custodial wallet and then actually

trade tens of thousands of crypto assets

through DeFi swaps versus only 200 on it

Toro. But 200 is actually a lot. Uh uh

and of course uh new markets such as

prediction markets and coming soon

perpetuals as well.

>> Uh how does it diff how do you

distinguish at least in the US between

what maybe KHI and poly market are doing

with prediction markets and I mean this

is a really crowded space.

>> Um first of all nothing is really

crowded when you think of the entire TAM

right. So the entire TAM were still very

very early stages of the largest

transformation of wealth in history. You

think we're talking about a hundred

trillion dollars moving from older

generations to younger generations.

>> Yeah. That's outside of just prediction

mark. I mean that's that's the whole

great wealth transfer.

>> I I think it's appetite. It's risk

appetite and type of new products. And

one of the reasons we did Zeno is we

noticed we have gen zeters who are

actually very interested in living on

chain and doing transaction on chain. I

think that's where a lot of the

ecosystem is. And when you look at the

different products that we've been

launching in it Toro, it's about making

sure that customers on it Toro can stay

on it Toro whether they want to trade

stocks uh or commodities or whether they

want to actually trade crypto or

actually copy somebody else or invest in

um Alpha Portfolios on Toro or spend

their money with a Visa that's connected

to the account. So, what we're building

is a financial super app that provides

you access to any type of financial

product that you want within the Toro

ecosystem.

>> All right. Well, speaking of crypto,

Yon, we got to talk about that uh since

that seems to be a little bit of a weak

spot uh for your most recent earnings,

but I mean, what's what's the outlook uh

in terms of the revenue from that market

and really just outlook for the market

directionally moving forward?

>> I I think uh we're seeing uh you know,

crypto yet in another super cycle.

Everybody's talking about the four-ear

cycles of crypto. We launched it in

2013. Boom. Crashed 85% in 14 that we

had huge amount of revenues in 2017

coming from crypto. A huge crypto rally,

boom, a crash in 218, 2021, 2022, now

2025, and 2026. So, it does seem it

works on a clock of a cycle, maybe a

self-fulfilling prophecy. Um, and I have

no doubt I'm a very big believer in

Bitcoin as digital gold that we are

going to see Bitcoin uh going way beyond

the all-time highs that we've seen in

October, but it might take time and

people to adopt to these technologies.

>> Uh, real time, what are you seeing as a

result of the cold card wallet hack made

by Canada based Coin Kite, the crypto

that was stolen?

>> Does it have any impact on it Toro? Are

you seeing more people invest in

>> we have bitcoin ETFs?

>> Uh we we no we're seeing actually more

people moving to non-custodial. Uh so we

actually have seen people coming into it

Toro depositing crypto in it Toro uh

into Zeno and then from Zeno into it

Toro. We actually are one of the unique

firms that uh are now introducing a

crypto buying power as well. So you can

actually come to it Toro, bring in your

crypto from basically, you know, either

non-custody or custodial wallet and then

get from us a margin or buying power to

buy stocks as well.

>> Are there a lot of people doing that?

It's kind of could be risky.

>> Um, you know, risk return. Uh, we

believe in educating people about the

markets.

>> Yonyi, always good to see you.

Appreciate the update on what the retail

investor is doing. and Yon AIA,

co-founder and global CEO of E Toro,

joining us here in the Bloomberg

Business Week studio.