Key facts
- eToro led a $12.5 million funding round for onchain derivatives platform Extended.
- Extended is an onchain perpetual futures exchange founded by former Revolut employees.
- eToro plans to integrate Extended's technology into its Zengo wallet.
- Rival Robinhood is also expanding its blockchain-based trading offerings.
- Extended has processed over $245 billion in trading volume.
Digital broker eToro is increasing its focus on decentralized finance (DeFi) by leading a $12.5 million funding round for Extended, an onchain perpetual futures exchange. The startup was founded by former employees of fintech firm Revolut.
This investment is a key part of eToro's strategy to offer DeFi products to its users, according to Elad Lavi, eToro's executive vice president of corporate development and strategy. The company recently acquired self-custody wallet Zengo for $70 million, and plans to integrate Extended's perpetual futures engine into Zengo, allowing users to trade onchain derivatives while maintaining control of their assets.
The move by eToro occurs amid a competitive landscape where other digital brokerages are also expanding into blockchain-based trading. Robinhood, a rival, recently launched its own blockchain, enhanced its tokenized stock offerings, and plans to extend its perpetual futures business to commodities like gold and oil.
Extended, led by former Revolut crypto head Ruslan Fakhrutdinov, has facilitated over $245 billion in trading volume and supports more than 100 perpetual markets. The firm intends to broaden its services to include spot trading and tokenized real-world assets.
The trend highlights a convergence of capital markets with digital asset infrastructure, with companies aiming to become comprehensive financial platforms. Coinbase, Robinhood, and prediction market operator Kalshi are all expanding into areas like perpetual futures, blurring the lines between traditional brokerages and crypto exchanges.