Lightly grease an 8-inch square baking dish with coconut oil. Place ½ cup of the water in a stand mixer (or in a large bowl if using a hand mixer) and whisk in the gelatin. Let sit for 1 minute to allow the gelatin to soften. Then turn the mixer on medium high to whip until the mixture looks like whipped egg whites.
Heat the sweetener and remaining ½ cup of water in a sauce pot over high heat, whisking continuously, until the mixture reaches 235°F to 240°F (soft ball stage), 3 to 5 minutes. Remove
the pot from the heat and stir in the extracts.
With the mixer on low speed, slowly add the hot syrup to the gelatin mixture. After all the syrup has been added, increase the speed to high and mix for about 5 minutes, until the marshmallow mixture has medium peaks (it will look like whipped egg whites).
Working quickly to prevent the marshmallow mixture from setting up in the bowl, pour it into the prepared baking dish. Allow the marshmallow to set at room temperature, about 5 hours, then cut to the desired size. By the next day, the cut marshmallows will have dried out enough to resemble store-bought marshmallows. Store extras in an airtight container for up to a week.