Key Takeaways
- • eToro acquires Zengo, a self-custodial crypto wallet provider, for approximately $70 million, mostly in cash, strengthening its digital asset infrastructure and Web3 connectivity.
- • Zengo's multi-party computation (MPC) cryptography technology enables keyless, non-custodial wallet services with integrated fiat on/off-ramps, token swaps, staking, and decentralized application access—capabilities eToro plans to integrate across its platform.
- • The acquisition positions eToro to compete in high-growth segments including prediction markets, perpetual futures, tokenized assets, and decentralized trading models as regulated platforms increasingly bridge traditional finance and on-chain infrastructure.
- • eToro CEO Yoni Assia emphasized the strategic rationale: self-custody represents a critical evolution in user-controlled finance, with Zengo's 2018-founded technology providing a mature, secure foundation for eToro's decentralized finance expansion.
- • The deal reflects eToro's $1.3 billion cash position post-IPO and stated strategy to pursue larger acquisitions to expand asset classes and geographic reach, following the September announcement of this acquisition agenda.
Summary
eToro, the Tel Aviv-based social trading and investment platform, has agreed to acquire Zengo, a self-custodial crypto wallet provider, in a transaction valued at approximately $70 million and funded primarily through cash reserves. The acquisition was announced on Wednesday and represents a significant strategic move to deepen eToro's digital asset capabilities and strengthen the bridge between traditional financial services and decentralized on-chain infrastructure.
Zengo, founded in 2018, has built a proprietary platform leveraging multi-party computation (MPC) cryptography to deliver a keyless, self-custodial wallet experience. The platform offers a comprehensive feature set including integrated fiat on- and off-ramps, token swaps, staking capabilities, and decentralized application access. Unlike custodial wallets where platforms hold user assets, Zengo's non-custodial model allows users to retain direct control of their digital assets through a system where two or more key shares are held by different parties, enhancing both security and usability against potential hacking threats.
eToro CEO Yoni Assia framed the acquisition as aligned with the company's long-term vision: "We believe the future of finance will be increasingly digital, decentralized and user-controlled. Self-custody is an important part of that evolution." The company plans to integrate Zengo's technology into its platform to support evolving use cases including prediction markets, perpetual futures, tokenized assets, lending protocols, and emerging decentralized trading models. Zengo CEO Ouriel Ohayon characterized the partnership as an opportunity to scale the wallet's mission of raising custody standards as crypto and traditional finance converge.
The deal arrives as eToro capitalizes on its May 2024 IPO proceeds—the company ended 2025 with $1.3 billion in cash and equivalents and raised nearly $620 million in the public offering. The acquisition also follows eToro's September statement signaling an intent to pursue larger strategic acquisitions to expand asset classes and geographic footprint. Market context shows competitors like Robinhood accelerating in prediction markets with an estimated $300 million annual revenue run rate, while Crypto.com and Webull have launched similar offerings. eToro's Zengo acquisition provides the infrastructure to compete in this segment while positioning regulated platforms to access Web3 services without regulatory burden, as eToro has noted that Zengo's non-custodial wallet features operate outside core licensed business activities.
Zengo, founded in 2018, has built a proprietary platform leveraging multi-party computation (MPC) cryptography to deliver a keyless, self-custodial wallet experience. The platform offers a comprehensive feature set including integrated fiat on- and off-ramps, token swaps, staking capabilities, and decentralized application access. Unlike custodial wallets where platforms hold user assets, Zengo's non-custodial model allows users to retain direct control of their digital assets through a system where two or more key shares are held by different parties, enhancing both security and usability against potential hacking threats.
eToro CEO Yoni Assia framed the acquisition as aligned with the company's long-term vision: "We believe the future of finance will be increasingly digital, decentralized and user-controlled. Self-custody is an important part of that evolution." The company plans to integrate Zengo's technology into its platform to support evolving use cases including prediction markets, perpetual futures, tokenized assets, lending protocols, and emerging decentralized trading models. Zengo CEO Ouriel Ohayon characterized the partnership as an opportunity to scale the wallet's mission of raising custody standards as crypto and traditional finance converge.
The deal arrives as eToro capitalizes on its May 2024 IPO proceeds—the company ended 2025 with $1.3 billion in cash and equivalents and raised nearly $620 million in the public offering. The acquisition also follows eToro's September statement signaling an intent to pursue larger strategic acquisitions to expand asset classes and geographic footprint. Market context shows competitors like Robinhood accelerating in prediction markets with an estimated $300 million annual revenue run rate, while Crypto.com and Webull have launched similar offerings. eToro's Zengo acquisition provides the infrastructure to compete in this segment while positioning regulated platforms to access Web3 services without regulatory burden, as eToro has noted that Zengo's non-custodial wallet features operate outside core licensed business activities.
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