eToro Takes Steps into DeFi by Investing in Extended's Onchain Derivatives Platform

The digital brokerage firm eToro is making significant strides in the decentralized finance (DeFi) sector by investing in the onchain derivatives platform Extended. This funding comes at a time when online brokerages are actively seeking to incorporate blockchain technology into their offerings.

Funding and Strategic Integration

eToro led a recent funding round totaling $12.5 million for Extended, a startup co-founded by former members of Revolut's cryptocurrency team. This investment aims to facilitate the integration of perpetual futures into the Zengo crypto wallet, allowing users to trade derivatives while maintaining control of their assets. Elad Lavi, eToro's executive vice president, highlighted that this initiative reflects a growing demand among users for access to innovative DeFi products.

Competitors and the Evolving Landscape

This move from eToro parallels similar steps being taken by competing brokerages. Notably, Robinhood is also expanding its presence in the DeFi space by launching its blockchain and broadening its offerings, which now include tokenized stocks and perpetual futures for commodities like gold and oil.

• eToro’s Recent Activities:
• Acquisition of Zengo for $70 million, announced in April.
• Investment in Extended to enhance user access to onchain derivatives.
• Plans to innovate its core platform with additional DeFi products in the future.

The Future of Onchain Trading

As the interest in onchain trading continues to grow, the lines between traditional finance and cryptocurrency markets are increasingly blurred. Perpetual futures, once considered specialized products within the crypto realm, are now experiencing rapid growth, intersecting with various asset classes beyond cryptocurrencies.

Under the leadership of Ruslan Fakhrutdinov, Extended aims to position itself at the forefront of this evolving market, catering to both crypto enthusiasts and mainstream investors looking for new trading opportunities in the DeFi landscape.