eToro Backs Extended, Accelerates Onchain Derivatives Push

What to Know

• eToro led a $12.5 million funding round for Extended, an onchain derivatives platform.
• Extended is led by Revolut’s former crypto head, underscoring the project’s fintech and crypto pedigree.
• eToro plans to integrate perpetual futures into the Zengo wallet.
• The company says the move fits into a wider strategy to expand DeFi products across its platform.
• The push comes as Robinhood and other rivals broaden their own onchain and tokenized asset offerings.
• Competition is intensifying across crypto exchanges, brokerages, and prediction-market style products.

eToro widens its crypto product roadmap

eToro is stepping up its blockchain strategy with a fresh investment in Extended, a derivatives startup focused on onchain trading. The digital broker participated as lead investor in a $12.5 million funding round, signaling that it intends to be more than a traditional multi-asset brokerage as the market shifts deeper into crypto-native infrastructure.

The move adds another layer to eToro’s expanding digital asset ambitions. Rather than limiting its crypto offering to spot trading and familiar brokerage products, the company is now leaning into products that sit closer to decentralized finance, where trading, settlement, and liquidity can move onchain.

Extended attracts backing from a major broker

Extended is led by a former crypto executive from Revolut, giving the startup immediate credibility in a sector where product design, compliance, and user trust matter as much as technology. By backing the platform, eToro is not only funding a derivatives venue but also aligning itself with a business built around the infrastructure that could power the next wave of crypto trading products.

Onchain derivatives have become one of the more closely watched segments in crypto because they combine the accessibility of blockchain rails with advanced trading features such as leverage and perpetual contracts. For brokers, that combination offers a path to higher engagement, broader user demand, and a more competitive product suite.

Perpetual futures are moving into wallets

One of the most notable parts of eToro’s announcement is its plan to bring perpetual futures into the Zengo wallet. That development reflects a broader industry trend: advanced trading products are no longer confined to centralized exchanges. Instead, they are increasingly being packaged for self-custody wallets and other user-facing apps that can make onchain trading more seamless.

If successful, the integration could help blur the line between wallet software and active trading platforms. That would be a meaningful shift for users who want direct access to derivatives without relying solely on a conventional exchange interface.

The DeFi strategy is becoming central

eToro executive vice president Elad Lavi said the investment is part of a broader effort to bring DeFi products to the company’s users. That framing matters because it suggests the company sees decentralized finance not as a side experiment, but as a core growth avenue.

For years, brokerage firms treated crypto as a separate vertical. Now the market is moving toward a model in which tokenized assets, derivatives, and wallet-based trading are converging into one user experience. eToro appears to be positioning itself early for that transition.

Rival platforms are pushing in the same direction

The timing is important. Robinhood has been expanding its own blockchain ambitions, including tokenized stocks and perpetual futures. That puts pressure on other retail-facing financial platforms to keep pace, especially as users grow more comfortable with onchain products and as the distinction between broker, exchange, and wallet becomes less rigid.

At the same time, the rise of prediction markets and other blockchain-based trading products is reshaping what investors expect from a modern platform. Users increasingly want access to a wider set of markets from one interface, and they want those markets to move quickly, settle efficiently, and work across different asset classes.

Why the move matters for crypto markets

eToro’s investment in Extended is a sign that large brokers are no longer observing DeFi from the sidelines. They are beginning to acquire exposure, form partnerships, and build product pipelines that can bring decentralized trading to mainstream audiences. That could accelerate adoption if the execution is smooth and regulatory requirements can be managed.

For the crypto market, the broader implication is that onchain derivatives are becoming more commercially attractive. As competition rises, platforms will likely continue to innovate around perpetual futures, tokenized instruments, and wallet-native trading tools. FXCOINZ notes that the latest move is less about a single startup and more about a larger industry race to define the future of retail crypto access.

Frequently Asked Questions (FAQs)

What did eToro announce?

eToro led a $12.5 million funding round for Extended and said it plans to expand its onchain and DeFi product offering.

What is Extended?

Extended is an onchain derivatives platform focused on crypto trading products built on blockchain infrastructure.

Who leads Extended?

Extended is led by Revolut’s former crypto head, which gives the startup strong experience in fintech and digital assets.

What is eToro planning with Zengo wallet?

eToro plans to integrate perpetual futures into the Zengo wallet, bringing more advanced trading tools into a wallet-based experience.

Why is eToro investing in onchain derivatives?

The company says the move fits into a broader strategy to deliver more DeFi products to its users and expand its crypto offering.

How does Robinhood fit into this trend?

Robinhood is also expanding its blockchain ambitions through tokenized stocks and perpetual futures, increasing competitive pressure across the sector.

Why are brokers interested in DeFi now?

Brokers see DeFi as a way to offer newer products, improve user engagement, and stay competitive as crypto trading becomes more integrated with mainstream finance.

What does this mean for retail traders?

Retail traders may gain access to more advanced crypto products through familiar platforms and wallets rather than only through dedicated exchanges.

Is this a sign of broader market change?

Yes. The move reflects a wider trend in which exchanges, prediction markets, wallets, and brokerages are increasingly overlapping.

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