#What is eToro's involvement in onchain derivatives?
eToro has made a significant move into the world of onchain derivatives by participating in a $12.5 million funding round for Extended, a decentralized perpetual futures exchange built on Starknet. This move reflects eToro’s shift towards integrating innovative financial products to enhance its service offerings, particularly for retail investors.
The funding round, which included contributions from Jump Crypto and Alber Blanc, closed on July 2. Extended presents traders with the ability to access perpetual futures contracts with leverage options as high as 100x across a diverse range of more than 100 markets.
#What does Extended offer traders?
Extended provides a decentralized platform where traders can execute highly leveraged bets on various crypto assets and tokenized stocks without requiring a centralized entity to manage their funds. This structure allows users to retain control over their assets while utilizing sophisticated trading instruments. Founded by former executives from Revolut, including CEO Ruslan Fakhrutdinov and CTO Dmitrii Krasovskikh, the platform initially launched in August 2025 under the name X10 on Starknet’s mainnet. By mid-2026, Extended had processed over $245 billion in trading volume across its suite of perpetual markets.
This isn’t Extended's first capital injection either; it had previously raised $6.5 million in 2025, bringing its total funding to approximately $19 million.
#Why is eToro interested in onchain futures?
The integration of Extended’s perpetual futures into the Zengo crypto wallet showcases eToro’s strategy to bridge its existing user base with the burgeoning market of onchain derivatives trading. As Zengo is a self-custodial wallet, users have full control over their keys, enhancing security while accessing cutting-edge trading options.
Since going public in the US, eToro has been actively seeking to distinguish its crypto offerings from basic spot trading to more complex instruments, recognizing the growing demand for advanced trading solutions in the digital asset space.
#What are the implications of building on Starknet?
Extended's decision to operate on Starknet, an Ethereum Layer 2 network utilizing zero-knowledge proofs to batch transactions, is significant. This choice ensures lower fees and faster execution times compared to Ethereum's primary layer. Current competitors in the onchain perpetuals market, such as dYdX, Hyperliquid, and GMX, highlight the intense competition, but Extended’s unique offerings — including high leverage and a broad array of tokenized financial instruments — set it apart.
The substantial $245 billion in trading volume after its launch signifies genuine user engagement and adoption. It's crucial to note that high-leverage trading can inflate volume statistics, as a small amount of collateral can lead to much higher trading activity.
In summary, eToro's venture into the onchain derivatives domain through Extended signifies a strategic expansion, aligning with the increasing needs of retail investors for innovative and diverse trading tools.