Unraveling of the prop firm Funded Unicorn
How far-reaching are the consequences of failure in risk handling for prop trading firms? The closure of Funded Unicorn, one of Germany’s top prop trading firms, exposed weaknesses in the firm’s risk management.
The firm used the much-respected A-book model to place all the risks on the market, but it did not work. The company’s collapse has now raised doubts about the model’s practicability.
“As you know, all of our funded traders were mirrored 1:1 with real company capital,” the company told its users. “This procedure was part of our transparent and fair model. But it was precisely this approach that ultimately brought us to our knees.”
Tokenized stock frenzy
And even as the prop trading industry rethinks its strategy, tokenized stocks seem to be the new trend, especially in the crypto space. Early this week, two major crypto exchanges, Kraken and Bybit, unveiled their listings of tokenized U.S. stocks just two hours apart.
BREAKING: Wall Street is officially onchain.xStocks are now live on Kraken ❎
60 U.S. equities tokenized and tradable 24/5. More coming soon.
We’re not waiting for the future. We’re building it.👇https://t.co/iKu44ZiwZN
Not available in the U.S. or to U.S. persons. Geo… pic.twitter.com/FjOsxDJ9se
— Kraken Exchange (@krakenfx) June 30, 2025
Robinhood also joined the adoption of tokenized stocks, including those of OpenAI and SpaceX. The announcement pushed the company’s stock 12% on Monday to an all-time high.
But beyond the hype, what added value do tokenized stocks bring? Although they have a number of benefits—24-hour markets, fast settlement, small ticket sizes, and global access—regulations remain an obstacle.
But even as tokenized stocks gain momentum, the number of active UK leverage traders has declined slightly, but overall engagement is rising.
According to Investment Trends’ 2025 UK Leverage Trading Report, the number of traders dropped to 167,000, down from 173,000 a year earlier. However, dormancy rates fell to their lowest level in five years.
XS.com opens new Kuwait office
Elsewhere, XS.com expanded further into the Middle East by opening its first office in Kuwait. The contracts for differences (CFDs) broker entered the Gulf country via a partnership with NVEST, a subsidiary of Construction Group and Al Wataniya Group.
Kuwait has a population of 4.8 million but shows strong demand for retail trading. According to Boursa Kuwait, retail investors made up 38 percent of the total traded value in 2024.
CFD broker GTC is building a tower in Dubai
Also expanding in the Gulf region, the brokerage firm GTC has officially begun construction on its new regional headquarters in Dubai, dubbed GTC Towers.
According to the company, the upcoming GTC Tower is reportedly planned as a purpose-built facility. It will serve as the main office for the broker’s operations in the region.
Saxo Australia set to rebrand
Also this week, Saxo Bank’s Australian unit announced plans to rebrand under its new owner, as planned during its sale earlier this year. The company will officially change its name to Totality on 11 August 2025.
Johannesburg-based DMA, a technology provider for financial advisers and wealth managers, acquired a majority stake in Saxo Australia. The sale came as Saxo reviewed its strategy in the Asia-Pacific region to support growth, while DMA prepared to launch its services in the Australian market.
eToro secures credit facility
eToro has secured a $250 million revolving credit facility from a syndicate of major global banks. The new facility is a three-year senior unsecured credit line.
The credit line was reportedly arranged by Citi, Bank Hapoalim, Bank Leumi, Deutsche Bank, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and UBS.
FxPro enters crypto
In the crypto space, FxPro is establishing a crypto trading desk, marking a shift beyond its existing FX and CFD business. The move was revealed through a job posting for a Senior Crypto Manager based in Cyprus, which the company published this week.
The broker, which has offered crypto CFDs since 2021, is now preparing to build an in-house desk dedicated to crypto trading operations. This asset class has recently been attracting more FX and CFD brokers, including Hantec Markets.
Swiss regulator pressures Swissquote
At the same time, Swissquote came under pressure from Switzerland’s financial regulator to improve its handling of suspicious activity following a sharp rise in fraud attempts and cyber attacks.
Finma issued the warning earlier this year, citing a need for stronger controls amid a growing wave of impersonation scams and data threats.
Revolut faces competition
Lastly, in the fintech space, Zopa launched current accounts to battle Revolut and Monzo in the UK, while Airwallex sharpens its global edge with fresh licenses and expansion sprees.
Zopa Bank, the UK-based digital lender that’s been steadily evolving since its P2P lending days, is stepping into the ring with the big boys. The move positions Zopa as a full-service neobank, now offering everything from savings and credit cards to auto loans and banking.
Unraveling of the prop firm Funded Unicorn
How far-reaching are the consequences of failure in risk handling for prop trading firms? The closure of Funded Unicorn, one of Germany’s top prop trading firms, exposed weaknesses in the firm’s risk management.
The firm used the much-respected A-book model to place all the risks on the market, but it did not work. The company’s collapse has now raised doubts about the model’s practicability.
“As you know, all of our funded traders were mirrored 1:1 with real company capital,” the company told its users. “This procedure was part of our transparent and fair model. But it was precisely this approach that ultimately brought us to our knees.”
Tokenized stock frenzy
And even as the prop trading industry rethinks its strategy, tokenized stocks seem to be the new trend, especially in the crypto space. Early this week, two major crypto exchanges, Kraken and Bybit, unveiled their listings of tokenized U.S. stocks just two hours apart.
BREAKING: Wall Street is officially onchain.xStocks are now live on Kraken ❎
60 U.S. equities tokenized and tradable 24/5. More coming soon.
We’re not waiting for the future. We’re building it.👇https://t.co/iKu44ZiwZN
Not available in the U.S. or to U.S. persons. Geo… pic.twitter.com/FjOsxDJ9se
— Kraken Exchange (@krakenfx) June 30, 2025
Robinhood also joined the adoption of tokenized stocks, including those of OpenAI and SpaceX. The announcement pushed the company’s stock 12% on Monday to an all-time high.
But beyond the hype, what added value do tokenized stocks bring? Although they have a number of benefits—24-hour markets, fast settlement, small ticket sizes, and global access—regulations remain an obstacle.
But even as tokenized stocks gain momentum, the number of active UK leverage traders has declined slightly, but overall engagement is rising.
According to Investment Trends’ 2025 UK Leverage Trading Report, the number of traders dropped to 167,000, down from 173,000 a year earlier. However, dormancy rates fell to their lowest level in five years.
XS.com opens new Kuwait office
Elsewhere, XS.com expanded further into the Middle East by opening its first office in Kuwait. The contracts for differences (CFDs) broker entered the Gulf country via a partnership with NVEST, a subsidiary of Construction Group and Al Wataniya Group.
Kuwait has a population of 4.8 million but shows strong demand for retail trading. According to Boursa Kuwait, retail investors made up 38 percent of the total traded value in 2024.
CFD broker GTC is building a tower in Dubai
Also expanding in the Gulf region, the brokerage firm GTC has officially begun construction on its new regional headquarters in Dubai, dubbed GTC Towers.
According to the company, the upcoming GTC Tower is reportedly planned as a purpose-built facility. It will serve as the main office for the broker’s operations in the region.
Saxo Australia set to rebrand
Also this week, Saxo Bank’s Australian unit announced plans to rebrand under its new owner, as planned during its sale earlier this year. The company will officially change its name to Totality on 11 August 2025.
Johannesburg-based DMA, a technology provider for financial advisers and wealth managers, acquired a majority stake in Saxo Australia. The sale came as Saxo reviewed its strategy in the Asia-Pacific region to support growth, while DMA prepared to launch its services in the Australian market.
eToro secures credit facility
eToro has secured a $250 million revolving credit facility from a syndicate of major global banks. The new facility is a three-year senior unsecured credit line.
The credit line was reportedly arranged by Citi, Bank Hapoalim, Bank Leumi, Deutsche Bank, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and UBS.
FxPro enters crypto
In the crypto space, FxPro is establishing a crypto trading desk, marking a shift beyond its existing FX and CFD business. The move was revealed through a job posting for a Senior Crypto Manager based in Cyprus, which the company published this week.
The broker, which has offered crypto CFDs since 2021, is now preparing to build an in-house desk dedicated to crypto trading operations. This asset class has recently been attracting more FX and CFD brokers, including Hantec Markets.
Swiss regulator pressures Swissquote
At the same time, Swissquote came under pressure from Switzerland’s financial regulator to improve its handling of suspicious activity following a sharp rise in fraud attempts and cyber attacks.
Finma issued the warning earlier this year, citing a need for stronger controls amid a growing wave of impersonation scams and data threats.
Revolut faces competition
Lastly, in the fintech space, Zopa launched current accounts to battle Revolut and Monzo in the UK, while Airwallex sharpens its global edge with fresh licenses and expansion sprees.
Zopa Bank, the UK-based digital lender that’s been steadily evolving since its P2P lending days, is stepping into the ring with the big boys. The move positions Zopa as a full-service neobank, now offering everything from savings and credit cards to auto loans and banking.
