eToro has become a strategic investor in Extended, an on-chain perpetual futures exchange, marking a direct expansion of its DeFi footprint. The funding round establishes a partnership between Extended and Zengo, the self-custody wallet eToro acquired in Feb. 2026. Extended confirmed the collaboration on X.
The partnership will embed Extended's decentralized derivatives platform directly within Zengo's wallet interface, letting users trade on-chain perpetual futures without surrendering self-custody of their assets.
Extended operates as a non-custodial exchange for perpetual futures across multiple crypto assets. Its architecture lets traders maintain full control over their funds while running leveraged positions, cutting out centralized intermediaries and the counterparty risk that comes with them.
eToro, which has more than 30 million registered accounts globally, has traditionally run centralized brokerage and social trading products. Its acquisition of Zengo earlier this year signaled a deliberate pivot toward giving users direct control over their digital assets.
Zengo's keyless security model runs on multi-party computation (MPC), eliminating the single seed-phrase vulnerability that haunts most self-custody wallets. Folding Extended's perpetuals trading into Zengo pushes the wallet well beyond basic asset storage and transfers.
The on-chain derivatives market has been running at more than $5 billion in daily volume across leading protocols. Hyperliquid, GMX, dYdX and Kwenta hold the dominant positions, offering perpetual and spot-margin products. Extended is targeting a larger slice of that volume.
eToro's capital gives Extended a direct pipeline to Zengo's user base, which could drive meaningful increases in TVL and daily trading volume. For a decentralized exchange, deeper liquidity translates directly to tighter spreads and lower slippage.
The integration positions Extended to compete more aggressively in the on-chain perpetuals space by pairing a non-custodial trading venue with the distribution reach of a major retail brand.
Technical details on the Zengo-Extended integration—including asset bridging mechanics, trade execution UI and fee structures—are expected in follow-on announcements.
