- eToro is acquiring crypto wallet startup Zengo for around $70 million
- Deal adds self-custody capabilities to eToro’s platform
- Zengo offers a seedless wallet with over 2 million users
- Move signals shift toward full crypto services beyond trading
eToro Moves Deeper Into Crypto Infrastructure
eToro has agreed to acquire Zengo in a deal reportedly worth about $70 million.
The acquisition brings Zengo’s self-custody wallet technology into eToro’s ecosystem, allowing users to store and manage their crypto directly instead of relying only on the platform.
This marks a shift from pure brokerage services toward a more complete crypto offering.
What Zengo Brings to the Table
Zengo is known for its non-custodial wallet that removes the need for seed phrases by using multi-party computation (MPC) technology.
The wallet already supports features like token swaps, staking, and access to decentralized apps. It has attracted over 2 million users and has not reported any wallet hacks since launch.
This makes it an attractive addition for eToro as security and ease of use remain key concerns for crypto users.
Why Self-Custody Matters
Self-custody allows users to fully control their assets, which has become a major theme in crypto after several exchange failures in recent years.
By integrating Zengo, eToro can offer both trading and secure storage, keeping users within its ecosystem instead of sending them to external wallets.
The company also pointed to future use cases like tokenized assets, prediction markets, and derivatives as areas where this setup could be important.
Part of eToro’s Broader Growth Strategy
The acquisition comes during a period of expansion for eToro. The company recently went public and reported strong growth, partly driven by crypto trading.
It also expanded into the U.S. market by enabling crypto trading in New York after securing regulatory approval.
With this move, eToro is positioning itself not just as a trading app, but as a full crypto platform that combines investing, storage, and access to onchain services.
