eToro announced that it has taken a strategic position in Extended, a decentralized exchange that focuses on perpetual futures contracts settled on‑chain. The investment marks the broker’s first direct foray into a native derivatives venue that operates entirely within blockchain infrastructure, signaling a deeper commitment to the evolving on‑chain trading landscape. While the size of the stake was not disclosed, eToro described the move as the opening step of a broader collaboration that will link its trading services with Extended’s technology.
Extended’s platform enables traders to open and close perpetual futures positions without relying on traditional intermediaries, using smart contracts to manage margin, funding rates, and settlement. The exchange emphasizes transparency and composability, allowing its contracts to be interacted with by other decentralized applications. By aligning with Extended, eToro gains exposure to a growing segment of crypto users who prefer non‑custodial, programmable trading environments while still benefiting from the broker’s regulatory compliance and user‑friendly interface.
As part of the same initiative, eToro said it will begin integrating Zengo, the self‑custody wallet it acquired earlier this year, with Extended’s trading interface. Zengo’s keyless security model is intended to provide a seamless bridge between eToro’s retail‑focused accounts and the on‑chain execution layer offered by Extended. The goal is to let users move assets from their eToro holdings into Zengo‑controlled wallets and then trade perpetual futures on Extended without needing to manage complex private‑key procedures.
Both eToro and Extended stressed that the financial specifics of the round remain confidential, but they highlighted shared objectives around expanding access to derivatives products and improving the user experience for crypto‑savvy investors. Representatives noted that the partnership will initially focus on technical integration and user education, with plans to roll out co‑branded features in the coming months.
The move fits a wider pattern in which established financial platforms are exploring on‑chain derivatives to capture demand from traders who favor decentralized markets. eToro’s prior offerings have centered on spot crypto and CFDs; adding a perpetual futures venue on‑chain expands its product suite while allowing it to test new infrastructure under a controlled partnership framework. Industry observers have pointed to similar collaborations between traditional brokers and DeFi protocols as a sign of growing convergence between regulated finance and open‑blockchain ecosystems.