Key takeaways
- eToro agreed to acquire crypto wallet provider Zengo in a deal valued at approximately $70 million, mostly in cash.
- Zengo’s multi-party computation (MPC) technology eliminates seed phrases, offering keyless self-custody to over 2 million users in 180 countries.
- The Zengo wallet will remain a separate, non-custodial product under eToro, giving users direct access to DeFi protocols, staking, and token swaps.
- The acquisition follows a wave of crypto M&A, including Robinhood’s $200M Bitstamp purchase and Ripple’s Hidden Road deal.
Published: April 15, 2026 09:00 UTC
eToro, the Nasdaq-listed social trading platform, has agreed to buy self-custody wallet provider Zengo for roughly $70 million. The deal, reported by Bloomberg and confirmed by both companies on April 15, is mostly structured in cash. Neither company disclosed the exact terms publicly.
Multi-party computation, or MPC, is a cryptographic method that splits a private key into multiple shares stored on separate devices, so no single point of failure can compromise a wallet. Zengo uses this approach to let users control their own crypto without ever writing down a seed phrase.
Why this deal matters for eToro
eToro has 40 million registered users across 75 countries, but its crypto offering has been limited to custodial trading. Acquiring Zengo adds a non-custodial layer, letting users hold their own keys while staying inside the eToro ecosystem. Yoni Assia, eToro’s co-founder and CEO, said in a statement: “The future of finance will be increasingly digital, decentralized and user-controlled, with self-custody playing an important role.”
The move also opens doors to tokenized assets, prediction markets, and perpetual contracts, areas where users need direct wallet access to interact with protocols. eToro had been a brokerage-first platform. This acquisition pushes it toward becoming a full crypto infrastructure provider.
What Zengo brings to the table
Zengo, founded in 2018 and backed by Insight Partners and Tether, has built its reputation on a zero-hack record over eight years of operation. The wallet supports token swaps, staking, fiat on-ramps, and direct interaction with decentralized applications. Its user base spans more than 2 million individuals and businesses in over 180 countries.
Ouriel Ohayon, Zengo’s co-founder and CEO, said the acquisition would accelerate Zengo’s core mission. “Joining eToro allows us to accelerate that mission at a global scale. Together, we can expand access to self-custody and on-chain finance.”
The wallet will continue to operate as a standalone product post-acquisition. Users will interact directly with third-party protocols through Zengo rather than routing through eToro’s regulated brokerage services.
The bigger picture: crypto M&A heats up
The eToro-Zengo deal is part of a broader consolidation trend across the crypto industry. Robinhood acquired exchange operator Bitstamp for $200 million in 2025. Crypto.com partnered with Exodus to integrate wallet services. Ripple bought prime brokerage firm Hidden Road to expand its institutional footprint. Each deal reflects the same pattern: trading platforms are racing to become one-stop crypto ecosystems that handle everything from trading to custody to DeFi access.
eToro’s stock (NASDAQ: ETOR) has a current market capitalization of $2.57 billion, down from its post-IPO peak of nearly $4 billion in mid-2025. The company went public in 2025 at $52 per share, initially surging above $79 before pulling back. Adding a self-custody wallet could help differentiate eToro from competitors like Robinhood and Interactive Brokers, which still rely on custodial models for crypto.
The deal is expected to close gradually, with no immediate changes to Zengo’s existing users. eToro operates under regulatory oversight from the FCA, CySEC, ASIC, SEC, and FINRA, among others, giving it a compliance framework to integrate wallet security alongside regulated brokerage services.
FAQ
What is Zengo and how does its wallet work?
Zengo is a self-custody crypto wallet founded in 2018 that uses multi-party computation (MPC) to eliminate seed phrases. Instead of storing a single private key, Zengo splits the key into multiple shares across devices, so users never face the risk of losing funds due to a misplaced recovery phrase. The wallet supports token swaps, staking, and direct DeFi access.
Will Zengo remain a separate wallet after the eToro acquisition?
Yes. eToro has confirmed that Zengo will continue operating as a standalone, non-custodial wallet product. Users will still interact directly with third-party protocols and DeFi applications through Zengo, separate from eToro’s regulated brokerage platform.
How does the eToro-Zengo deal compare to other recent crypto acquisitions?
The $70 million deal is smaller than Robinhood’s $200 million Bitstamp acquisition but follows the same industry pattern: trading platforms are buying infrastructure providers to offer end-to-end crypto services. Ripple’s Hidden Road purchase and Crypto.com’s Exodus partnership are other recent examples of this consolidation wave.
