eToro has become a strategic investor in Extended, an onchain perpetual futures exchange built on Arbitrum. Extended announced the funding round on X, describing it as the start of a formal partnership with Zengo, the self-custody wallet eToro acquired in early 2024.
The exact terms—fund size, valuation, or deployment timeline—were not disclosed. Extended is a decentralized perpetual futures platform where users trade leveraged positions on crypto assets.
Zengo's integration with Extended would let eToro's wallet users access onchain derivatives directly from their self-custodied accounts, rather than bridging to other platforms or relying on centralized exchange UIs. eToro has been expanding its self-custody offerings since acquiring Zengo; the wallet handles key management and recovery without requiring seed phrases.
For Extended, the eToro backing adds institutional credibility and distribution reach. eToro operates in multiple jurisdictions and serves millions of traders, though most of its user base has historically interacted with assets through its centralized platform rather than onchain protocols.
The broader context: centralized exchanges have faced regulatory pressure over derivatives trading in the US and EU. Onchain perpetual exchanges operate without a single operator, reducing but not eliminating compliance exposure. eToro's investment suggests confidence in the Extended model and a strategic interest in offering users self-custodied derivatives access as an alternative channel.
No launch date for the Zengo integration was announced. Extended has raised funding from other sources; this round marks eToro's formal entry as a backer.