Lira is a domain-specific language that can be used to write OTC financial contracts for assets currently on the ethereum blockchain, eToro said in a statement.

He said the language is both secure and easy to program, while ensuring self-executing global settlement and automated trade reporting and monitoring, while its easy tracking and compression will allow for better efficiency of collateral requirements.

Additionally, it is the first decentralized finance project that will seek to extend the code across blockchains once it is open sourced.

eToro CEO and co-founder Yoni Asia said that bringing the OTC derivatives market to the blockchain will bring more transparency and capital efficiency to the industry.

“Activities in the post-trade cycle, such as settlement and clearing of derivatives, are both costly and a source of systemic risk,” Mr Asia said.

“We believe that blockchain technology can provide a secure execution environment where settlement is guaranteed by design.”