eToro has led a $12.5 million funding round for Extended, enhancing its DeFi offerings and integrating onchain derivatives into its Zengo wallet.
eToro is stepping up its commitment to decentralized finance (DeFi) by leading a $12.5 million funding round for Extended, a startup focused on onchain derivatives, particularly perpetual futures. The round attracted participation from Jump Crypto and Alber Blanc, further solidifying eToro's position in the evolving DeFi landscape.
This investment is part of eToro's broader strategy to enhance its DeFi offerings, as highlighted by Elad Lavi, eToro's executive VP of corporate development and strategy. He noted that there is increasing interest among users for straightforward access to DeFi products, making this investment and the recent acquisition of the Zengo wallet vital for meeting this demand.
eToro plans to integrate Extended's perpetual futures capabilities into the Zengo wallet, allowing users to access onchain derivatives while retaining control over their assets. Lavi indicated that this is just the beginning, with plans for a wider array of DeFi products to be available on eToro's main platform.
Competitive Landscape in Onchain Trading
This move comes as competition intensifies among digital brokerages pivoting towards blockchain-based trading. Notably, Robinhood has also expanded its offerings, including tokenized stocks and commodities trading, blurring the lines between traditional brokerages and cryptocurrency exchanges.
Extended, which was co-founded by former Revolut crypto chief Ruslan Fakhrutdinov, has already processed over $245 billion in trading volume and supports more than 100 perpetual markets. The company aims to diversify its services to include spot trading and tokenized real-world assets.
Fakhrutdinov stated that while the initial focus was on serving DeFi enthusiasts, the next phase will involve expanding infrastructure and partnerships to further develop onchain derivatives. This investment aligns with a broader trend towards creating comprehensive financial platforms that integrate various trading products.
Ouriel Ohayon, managing director at Zengo, remarked that capital markets are increasingly merging with digital asset infrastructure, with eToro's investment in Extended signaling a shared vision for a future where trading is digital and accessible around the clock.
