eToro bets on self-custody with $70 million acquisition of crypto wallet startup Zengo
eToro has agreed to acquire crypto wallet provider Zengo as the trading platform adds self-custody capabilities to its push into onchain finance.
The agreement brings Zengo’s non-custodial wallet technology into eToro, widening its digital asset stack and connecting its brokerage platform with onchain infrastructure, according to a company release. eToro did not disclose the terms of the deal, though Bloomberg reported it was valued at around $70 million, citing a person familiar with the terms who was not authorized to discuss the matter publicly.
Zengo, founded in 2018, built its wallet around multi-party computation cryptography, removing the need for seed phrases while offering token swaps, staking, and access to decentralized applications. The product has drawn more than 2 million users globally and has not recorded a wallet hack since launch, the company said.
Zengo’s acquisition gives eToro a direct route into self-custody at a time when trading platforms are looking beyond brokerage toward full-stack crypto services. The firm pointed to use cases such as tokenized assets, prediction markets, and perpetuals as areas of focus as these markets mature.
Yoni Assia, eToro’s CEO, said self-custody will play a central role in a more decentralized financial system, positioning the deal as a long-term build rather than a near-term trading play. Zengo’s leadership struck a similar note, as CEO Ouriel Ohayon noted that the tie-up allows the wallet to scale globally while connecting self-custody tools to a broader investing ecosystem.
The acquisition is subject to customary closing conditions.
eToro expansion
Acquiring Zengo slots into a period of expansion for eToro. The firm went public on Nasdaq last year with a strong debut, then reported a jump in profitability in the fourth quarter, helped in part by gains in crypto derivatives trading. More recently, it activated crypto trading in New York after securing a BitLicense, opening a key U.S. market.
Zengo, for its part, has steadily layered features onto its wallet. It introduced an inheritance-style recovery system for digital assets and acquired stablecoin-focused wallet Minke to broaden its offering. The company previously raised $20 million in a Series A round in 2021 and later sought additional funding at a $100 million valuation.
