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eToro becomes strategic investor in Extended, pairing with Zengo
The funding round also kicks off a partnership aimed at bringing onchain perpetuals to users of eToro's self-custody wallet, after eToro bought Zengo for about $70 million earlier this year.
eToro has taken a strategic stake in Extended, an onchain perpetual futures exchange, and said the round is the start of a partnership between Extended and Zengo, the self-custody wallet eToro acquired earlier in the year, according to a post from Extended, with reporting by The Defiant.
Neither eToro nor Extended disclosed the investment size in their own statements, though CoinDesk reported the round totaled $12.5 million. Extended is a decentralized exchange built on Starknet that supports more than 100 markets across crypto, equities, foreign exchange and commodities, and it is designed to connect with self-custody wallet users.
The tie-up builds on eToro's Zengo acquisition announced in April, which Bloomberg and other outlets reported was worth roughly $70 million. eToro said the Zengo deal was meant to accelerate its strategy of connecting traditional finance with on-chain infrastructure, while Zengo's CEO said joining eToro would expand access to self-custody and on-chain finance.
By pairing Zengo custody with Extended's derivatives platform, eToro is positioning itself to offer onchain perpetuals to wallet users who keep control of their own assets. The Defiant also noted the move fits a broader push by retail brokerages into onchain trading products, including Robinhood's launch of the public mainnet of Robinhood Chain earlier this week.