eToro Invests in Onchain Derivatives Platform Extended

Online trading platform eToro announced an investment in Extended, an onchain derivatives platform, this week. This move signifies eToro's strategic entry into the decentralized finance (DeFi) sector and its intention to integrate perpetual futures into the Zengo wallet. The company also plans to expand its DeFi product offerings on its core platform.

The investment in Extended positions eToro to capitalize on the growing demand for decentralized financial products. Extended specializes in providing onchain derivatives, a complex financial instrument that operates on blockchain technology, offering greater transparency and potentially lower fees compared to traditional finance. The integration into Zengo wallet suggests a focus on user-friendly access to these advanced financial tools for retail investors.

This development aligns with a broader trend observed in the financial brokerage industry, where several competitors are actively expanding their presence in the DeFi space. Notably, Robinhood, a rival trading platform, has also been increasing its onchain offerings, indicating a significant shift in how traditional financial services providers are approaching digital assets and decentralized technologies. The race among brokers to offer DeFi products suggests a recognition of the market's potential and a desire to retain and attract customers interested in these innovative financial avenues.