eToro Backs Onchain Derivatives Platform as Brokers Eye DeFi
eToro has invested in Extended, an onchain derivatives platform, signaling that traditional brokers are moving fast into decentralized finance.
If you thought your favorite stock-trading app was going to sit out the DeFi revolution, think again. eToro — the social trading platform known for letting everyday investors copy pro traders — has put money into Extended, a platform built for trading derivatives directly onchain. That means no middleman clearing your trades behind the scenes, just smart contracts doing the heavy lifting.
This move is part of a broader pattern worth paying attention to. Traditional brokers and fintech firms are no longer content to watch decentralized finance grow from the sidelines. By backing an onchain derivatives platform, eToro is essentially planting a flag in territory that was, until recently, dominated almost entirely by crypto-native projects and DeFi power users.
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Derivatives — think options and futures contracts — are already a massive business in traditional finance. Bringing them onchain opens the door to 24/7 trading, greater transparency, and potentially lower fees, since smart contracts can automate a lot of the back-office work that currently costs real money. For retail traders, that could eventually translate into more accessible ways to hedge positions or speculate on price moves without going through a centralized exchange.
eToro's investment in Extended suggests the firm sees onchain infrastructure as a genuine competitive advantage, not just a marketing gimmick. As more regulated brokers wade into DeFi, the lines between traditional brokerage services and decentralized protocols are going to keep blurring — and that's probably good news if you've been waiting for DeFi to feel a little less like the Wild West.
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