Extended, formerly known as X10, was founded by Ruslan Fakhrutdinov, who previously led crypto operations at Revolut, the UK-based neobank with over 50 million users globally. The platform runs on Starknet, a ZK-rollup layer-2 network on Ethereum that uses STARK cryptographic proofs to settle trades onchain while keeping gas costs far below what direct Ethereum settlement would require. Extended offers more than 100 perpetual markets spanning crypto, foreign exchange pairs like EUR/USD, equity indices including the S&P 500, gold, and oil. Leverage goes up to 100x. Maker fees are zero; taker fees are 0.025%. The platform has processed more than $245 billion in cumulative volume as of June 2026.

This round follows a $6.5 million seed from Tioga Capital, Semantic Ventures, Prelude, StarkWare, Cyber Fund, and others including Revolut executives and Lido co-founder Konstantin Lomashuk.

eToro's Broader DeFi Stack

The Extended investment is the second major move in a strategy that began taking shape in April 2026, when eToro acquired Zengo, a self-custody crypto wallet, for $70 million. Zengo was founded in Tel Aviv in 2018, has accumulated 2 million users across 180 countries, and has never suffered a wallet hack in its operating history. The platform uses Multi-Party Computation (MPC), a cryptographic method that splits a user's private key between their device and Zengo's servers so the full key is never reassembled in one place. This eliminates the seed phrase, the string of words that users must safeguard with standard wallets and frequently lose.

The intended architecture connects all three layers: eToro's 40 million registered users funnel into Zengo for self-custody, and from there into Extended for derivatives trading. Users would hold their own assets throughout. Elad Lavi, EVP at eToro, framed the rationale plainly: "We are seeing growing demand from our users for seamless access to DeFi products." eToro has also stated on the record that "The partnership will focus on expanding access to global financial markets through next-generation on-chain infrastructure."

Zengo sits outside eToro's MiCA (Markets in Crypto-Assets) license by design. MiCA, the EU's comprehensive crypto regulation, took full effect on July 1, 2026, and the deal was announced the day after that milestone, a timing that underscores how deliberately eToro is constructing its DeFi-facing layer. MiCA covers centralized trading and custody services operated by eToro's Cyprus entity. Self-custodial wallets and direct DeFi protocol interactions fall outside that regulatory perimeter, which means eToro can route users toward DeFi through Zengo without needing a separate authorization.

Market Context: Onchain Perps Are Growing Fast

Extended is entering a market undergoing rapid structural change. DEX perpetual futures volume reached $739.5 billion in January 2026, up from $81.7 billion two years earlier. DEX perps now hold 10.2% of total perpetual futures market share, compared to 2.0% previously. Open interest on decentralized perp platforms surged 229.6% in 2025, while centralized exchange open interest fell 20.8%. The total perpetuals market grew 75% to $7.24 trillion over the same period.

A notable driver of this expansion is the rise of real world asset (RWA) perpetuals. Silver perps alone recorded $1.25 billion in 24-hour volume at peak, and total RWA perpetual volume has surpassed $15 billion. Extended's catalog of S&P 500, oil, gold, and FX markets places it squarely within this trend, giving its non-crypto offerings a clear structural tailwind and a concrete news hook beyond speculation on digital assets.

Hyperliquid, the current market leader, has seen its share of DEX perp volume drop from roughly 80% in August 2025 to approximately 38% in early 2026, as competing platforms have gained ground. Extended is competing in a field that also includes dYdX, Lighter, and Aster.

Ouriel Ohayon, Managing Director of Zengo, pointed to one structural advantage of onchain infrastructure: it operates "24/7, beyond the traditional trading week," unlike legacy financial systems that close over weekends and holidays.

What This Means for Users Outside the US and EU

For traders in South Asia and Africa, the deal carries real but qualified significance. eToro's centralized platform is unavailable in India, Nigeria, and Kenya, three markets with among the highest crypto adoption rates globally. eToro does operate in South Africa, and the Middle East and Africa region together account for approximately 4% of its current business. India has an estimated 93 to 100 million crypto holders; Nigeria consistently ranks in the top five countries worldwide for crypto adoption by the Chainalysis index.

Extended's onchain architecture works differently. The platform is accessible to anyone with an Ethereum-compatible wallet such as MetaMask or a Starknet-native wallet, and it does not require identity verification at the protocol level. Extended blocks US users, not users from emerging markets. In practice, a trader in Lagos or Karachi can access S&P 500 perpetuals, gold perps, or EUR/USD leverage at 0.025% taker fees without going through a traditional broker. SEBI (Securities and Exchange Board of India) prohibits most retail derivatives on foreign assets, making this kind of access structurally meaningful for those willing to use DeFi directly.

That said, real barriers exist. Frontend geofencing remains possible, and Extended could theoretically restrict additional countries as it scales. Nigeria's ongoing naira volatility and foreign exchange controls make acquiring the stablecoin collateral required for most perp platforms an additional cost. India's 30% flat tax on crypto gains and 1% transaction levy continue to suppress volumes on domestic platforms and create compliance uncertainty for DeFi usage. Internet penetration and smartphone quality also remain limiting factors for ZK-proof verification in rural South Asia and Sub-Saharan Africa, a constraint that carries particular weight for a platform built on ZK-rollup infrastructure.

What Comes Next

Fakhrutdinov said growth would require infrastructure and partnerships for onchain derivatives expansion. eToro's Q1 2026 results show the company holds $1.3 billion in cash, while its crypto revenue fell 39% year-on-year to $2.15 billion. That revenue decline gives the Extended bet a strategic rationale beyond brand positioning: analysts suggest that onchain derivatives infrastructure could generate fee revenue from markets eToro's regulated platform cannot reach. Whether the Zengo integration ships on a near-term timeline, and whether it includes Extended's full market catalog, will determine how much of that potential converts into practice.