eToro Invests in Extended, Plans DeFi Futures Integration
eToro has invested in onchain derivatives platform Extended, planning to bring perpetual futures to Zengo wallet and expand DeFi offerings. This move aligns with a broader trend as competitors like Robinhood also expand onchain, signaling traditional brokers' accelerating push into decentralized finance.
Quick Take
eToro invests in onchain derivatives platform Extended to expand DeFi products.
Perpetual futures will be integrated into Zengo wallet as part of the plan.
The move intensifies competition with Robinhood, which is also growing onchain offerings.
Traditional brokers' DeFi push signals growing institutional adoption of crypto derivatives.
Market Impact Analysis
BullishTraditional broker eToro entering onchain derivatives and DeFi signals growing institutional adoption, potentially increasing demand for crypto assets.
Speculation Analysis
Key Takeaways
- eToro invests in Extended to introduce perpetual futures on Zengo wallet.
- The move escalates competition with Robinhood, which is also expanding onchain.
- Traditional brokers' push into DeFi signals growing institutional adoption of crypto derivatives.
- eToro plans to expand DeFi products across its core platform.
What Happened
eToro has made a strategic investment in onchain derivatives platform Extended, aiming to integrate perpetual futures into its Zengo wallet. The multi-asset brokerage also plans to roll out additional DeFi products directly on its core platform. This initiative follows similar moves by fintech rival Robinhood, which has been expanding its onchain wallet and DEX offerings. By entering the onchain derivatives space, eToro is positioning itself to capture demand for decentralized trading products among retail investors.
The Numbers
While financial terms of the investment remain undisclosed, the perpetual futures market has seen explosive growth, with monthly volumes exceeding $100 billion across major exchanges. Robinhood's recent onchain push has already drawn significant user activity, setting a competitive benchmark. eToro's entry comes as total value locked in DeFi derivatives protocols continues to climb, reflecting a broader shift toward decentralized trading infrastructure.
Why It Happened
eToro's move is driven by mounting competitive pressure in the retail trading space. As Robinhood and other platforms embrace onchain features, traditional brokers must adapt to retain users. Perpetual futures are among crypto's most liquid instruments, and offering them in a DeFi-native format appeals to a growing cohort of self-custody users. Additionally, regulatory clarity in key markets has made it more feasible for established firms to offer DeFi products without excessive compliance risk.
Broader Impact
The integration could accelerate the convergence of centralized and decentralized finance. As eToro brings DeFi to its millions of users, other traditional brokerages may feel compelled to follow suit. The partnership with Zengo underscores the increasing importance of mobile-friendly, self-custodial wallets in mainstream trading. If successful, it could pave the way for more CeFi platforms to embrace onchain derivatives.
What to Watch Next
- eToro's timeline for rolling out perpetual futures and additional DeFi products.
- How Robinhood and other competitors respond with their own onchain offerings.
- The impact on Zengo wallet's user growth and transaction volumes.
This article is for informational purposes only and does not constitute financial advice.
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