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In brief eToro acquired self-custodial wallet provider Zengo, reportedly for $70 million.
Zengo’s keyless wallet technology uses multi-party computation (MPC) cryptography and serves over 2 million users.
The acquisition positions eToro to support emerging DeFi use cases, including prediction markets and perpetuals.
Trading platform eToro has entered into an agreement to acquire self-custodial crypto wallet provider Zengo—a deal that Bloomberg reports was worth $70 million, paid mostly in cash—combining its 40 million registered users with Zengo’s keyless wallet technology.
The acquisition brings together eToro’s global trading infrastructure with Zengo’s multi-party computation (MPC) cryptography, which has powered secure wallet services for over 2 million individuals and businesses across 180+ countries since 2018.
“We believe the future of finance will be increasingly digital, decentralized and user-controlled, with self-custody playing an important role in that evolution,” said eToro co-founder and CEO Yoni Assia, in a statement. “Zengo has built an innovative and secure wallet experience, and this acquisition will enable us to accelerate its growth while continuing to provide users with choice in how they access digital assets.”
“As we often say, crypto downtimes are the time to build, and this acquisition reflects that long-term approach,” he added.
Assia said that commodity trading represents 60% of the platform’s trading commissions by asset class as of Q1 2026—with volumes nearly four times higher year over year, according to the announcement.
Zengo previously raised $20 million in a Series A round in 2021, ultimately raising a total of $24 million per data from Crunchbase. The startup’s investors include Insight Partners and Tether, and Zengo has also acquired stablecoin-focused wallet Minke to expand its offerings.
eToro shares are up more than 6% so far Wednesday, recently trading hands at $36.80. Shares are up more than 18% in the last week, rising alongside many other crypto firms as the market shows signs of recovery.
In 2024, the company settled charges with the SEC over operating an unregistered broker and clearing agency for crypto assets, and agreed to only offer U.S. traders Bitcoin, Ethereum, and Bitcoin Cash as part of the agreement. However, the company has vastly expanded its crypto offerings to U.S. customers since, under President Trump’s crypto-friendly regulatory push.