Key Takeaways
- • eToro is acquiring Israeli crypto wallet startup Zengo for approximately $70 million in a cash-backed deal announced April 15, 2026, significantly expanding its self-custody capabilities.
- • Zengo represents a modest exit for the startup, which raised $24 million lifetime funding from investors including Insight Partners (which led a $20 million 2021 round), Samsung Next, Elron, and Collider Ventures.
- • The acquisition combines eToro's $3 billion Wall Street-traded multi-asset platform with Zengo's proprietary multi-party computation (MPC) cryptography and keyless wallet architecture, enabling users to hold digital assets without reliance on centralized custodians.
- • eToro positions the deal as strategic infrastructure for emerging use cases including tokenized assets, prediction markets, and perpetual derivatives, reflecting the company's thesis that finance will become "increasingly digital, decentralized and user-controlled."
- • Zengo's comprehensive wallet ecosystem—featuring on/off-ramp capabilities, token swaps, staking, and decentralized application access—becomes integrated into eToro's global distribution network and trading platform.
Summary
eToro, the Tel Aviv-based multi-asset trading platform valued at approximately $3 billion on public markets, has agreed to acquire Zengo, a self-custodial cryptocurrency wallet provider, for an estimated $70 million. The transaction, announced on April 15, 2026, represents eToro's strategic pivot toward non-custodial blockchain infrastructure and user-controlled digital asset management.
Zengo, founded in 2018 by Ouriel Ohayon, Tal Be'ery, and Omer Shlomovits, has developed a distinctive wallet solution built on multi-party computation cryptography with a "keyless" architecture designed to simplify security and user experience. The startup's wallet offers a comprehensive feature set including fiat currency conversion, token swaps, staking capabilities, and decentralized application access—positioning it among the more fully-featured self-custody solutions available to retail investors. The company raised $24 million in lifetime funding, with Insight Partners leading its final $20 million round in 2021; other investors include Samsung Next, Elron, and Collider Ventures.
The acquisition integrates Zengo's non-custodial technology with eToro's established global distribution platform and multi-asset trading capabilities. According to eToro co-founder and CEO Yoni Assia, the deal reflects the company's long-term thesis on financial infrastructure evolution: "We believe the future of finance will be increasingly digital, decentralized and user-controlled." The combination will enable eToro to support emerging digital asset use cases, including tokenized assets and decentralized trading models such as prediction markets and perpetuals—categories that have grown in institutional relevance as regulatory frameworks mature.
Zengo CEO Ouriel Ohayon framed the acquisition as enabling global scale expansion for the wallet platform. The deal underscores a broader industry consolidation trend wherein established trading platforms integrate non-custodial infrastructure to offer users choice between centralized trading and self-directed digital asset management. For institutional and sophisticated investors, the transaction signals eToro's commitment to blockchain-native infrastructure as a core strategic pillar rather than a peripheral offering.
Zengo, founded in 2018 by Ouriel Ohayon, Tal Be'ery, and Omer Shlomovits, has developed a distinctive wallet solution built on multi-party computation cryptography with a "keyless" architecture designed to simplify security and user experience. The startup's wallet offers a comprehensive feature set including fiat currency conversion, token swaps, staking capabilities, and decentralized application access—positioning it among the more fully-featured self-custody solutions available to retail investors. The company raised $24 million in lifetime funding, with Insight Partners leading its final $20 million round in 2021; other investors include Samsung Next, Elron, and Collider Ventures.
The acquisition integrates Zengo's non-custodial technology with eToro's established global distribution platform and multi-asset trading capabilities. According to eToro co-founder and CEO Yoni Assia, the deal reflects the company's long-term thesis on financial infrastructure evolution: "We believe the future of finance will be increasingly digital, decentralized and user-controlled." The combination will enable eToro to support emerging digital asset use cases, including tokenized assets and decentralized trading models such as prediction markets and perpetuals—categories that have grown in institutional relevance as regulatory frameworks mature.
Zengo CEO Ouriel Ohayon framed the acquisition as enabling global scale expansion for the wallet platform. The deal underscores a broader industry consolidation trend wherein established trading platforms integrate non-custodial infrastructure to offer users choice between centralized trading and self-directed digital asset management. For institutional and sophisticated investors, the transaction signals eToro's commitment to blockchain-native infrastructure as a core strategic pillar rather than a peripheral offering.
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