Key Takeaways
- • eToro has agreed to acquire Zengo, a self-custodial crypto wallet provider founded in 2018, for $70 million paid predominantly in cash, combining eToro's 40 million registered users with Zengo's proprietary keyless wallet technology.
- • The acquisition strengthens eToro's digital asset infrastructure by integrating Zengo's multi-party computation (MPC) cryptography and non-custodial wallet capabilities, enabling support for emerging asset classes including tokenized assets, prediction markets, and perpetual futures trading.
- • Zengo's full-service crypto offering—encompassing on- and off-ramp capabilities, token swaps, staking, and decentralized application access—expands eToro's ability to serve users across the spectrum of self-custody and traditional finance integration.
- • eToro CEO Yoni Assia framed the acquisition as central to the firm's strategic vision of connecting traditional finance with on-chain infrastructure, positioning self-custody as a foundational element of decentralized, user-controlled finance.
Summary
eToro, the global multi-asset trading platform, has entered into an agreement to acquire Zengo, a leading self-custodial crypto wallet provider, in a transaction valued at $70 million and paid predominantly in cash. The deal marks a significant strategic expansion for eToro into the self-custody segment, combining the platform's 40 million registered users with Zengo's proprietary non-custodial wallet technology.
Zengo, founded in 2018, has established itself as a pioneer in multi-party computation (MPC) cryptography, developing a keyless wallet architecture that prioritizes security while simplifying the user experience for self-custody. The company operates as one of the market's most comprehensive consumer self-custodial solutions, offering integrated on- and off-ramp services, token swaps, staking functionality, and access to decentralized applications. This full-service capability makes it an attractive acquisition target for eToro's broader digital asset strategy.
The acquisition directly supports eToro's stated objective to bridge traditional finance with on-chain infrastructure and the crypto-native economy. By integrating Zengo's wallet technology, eToro gains enhanced capabilities to support evolving digital asset use cases, including tokenized securities, emerging decentralized trading models such as prediction markets, and perpetual futures contracts. eToro CEO Yoni Assia emphasized this vision, stating: "We believe the future of finance will be increasingly digital, decentralized and user-controlled. Self-custody is an important part of that evolution. Zengo has built an innovative and secure wallet experience, and this acquisition will enable us to accelerate Zengo's growth while continuing to provide users with choice in how they access digital assets."
The transaction positions eToro to offer institutional and retail users a more comprehensive digital asset ecosystem without centralizing custody risk, addressing a critical friction point in crypto adoption and regulatory compliance. The combination of eToro's distribution scale and regulated brokerage infrastructure with Zengo's specialized wallet technology creates a differentiated offering in a competitive landscape increasingly focused on self-custody and decentralized finance infrastructure.
Zengo, founded in 2018, has established itself as a pioneer in multi-party computation (MPC) cryptography, developing a keyless wallet architecture that prioritizes security while simplifying the user experience for self-custody. The company operates as one of the market's most comprehensive consumer self-custodial solutions, offering integrated on- and off-ramp services, token swaps, staking functionality, and access to decentralized applications. This full-service capability makes it an attractive acquisition target for eToro's broader digital asset strategy.
The acquisition directly supports eToro's stated objective to bridge traditional finance with on-chain infrastructure and the crypto-native economy. By integrating Zengo's wallet technology, eToro gains enhanced capabilities to support evolving digital asset use cases, including tokenized securities, emerging decentralized trading models such as prediction markets, and perpetual futures contracts. eToro CEO Yoni Assia emphasized this vision, stating: "We believe the future of finance will be increasingly digital, decentralized and user-controlled. Self-custody is an important part of that evolution. Zengo has built an innovative and secure wallet experience, and this acquisition will enable us to accelerate Zengo's growth while continuing to provide users with choice in how they access digital assets."
The transaction positions eToro to offer institutional and retail users a more comprehensive digital asset ecosystem without centralizing custody risk, addressing a critical friction point in crypto adoption and regulatory compliance. The combination of eToro's distribution scale and regulated brokerage infrastructure with Zengo's specialized wallet technology creates a differentiated offering in a competitive landscape increasingly focused on self-custody and decentralized finance infrastructure.
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