eToro Moves Into Wallets With Zengo Acquisition
eToro has agreed to acquire crypto wallet provider Zengo for about $70 million, marking a shift by the brokerage toward self-custody and on-chain infrastructure.
Summary:
- eToro is acquiring Zengo in a $70 million deal focused on wallet technology.
- The move brings MPC-based “keyless” security into eToro’s ecosystem.
- It reflects a broader push to bridge traditional trading with on-chain finance.
The deal, announced April 15, will be paid mostly in cash and values Zengo at a modest premium over the roughly $24 million it raised since its founding in 2018. While financial terms were limited, the strategic focus is clear: eToro is buying infrastructure, not just users.
A Bet on Self-Custody Technology
At the center of the acquisition is Zengo’s Multi-Party Computation (MPC) system. Unlike traditional crypto wallets, it removes the need for seed phrases, which are often seen as both a usability hurdle and a security risk.
The technology splits private key control across multiple components rather than relying on a single recovery phrase. That approach aims to reduce the chance of loss or theft, a key concern for retail users entering crypto.
eToro plans to integrate these features into its main platform over time. For now, Zengo will continue to operate as a standalone app, allowing the company to maintain its existing user base of more than 2 million globally.
Moving Beyond Brokerage Roots
The acquisition signals a broader shift in eToro’s strategy. Known primarily as a regulated brokerage offering stocks, commodities and crypto trading, the company is now moving deeper into the infrastructure layer of digital assets.
Chief Executive Officer Yoni Assia has framed the move as part of a push to connect traditional finance with decentralized systems. That includes supporting emerging use cases such as tokenized assets, prediction markets and perpetual derivatives.
The timing also reflects eToro’s continued reliance on crypto. While commodities accounted for a large share of trading commissions in early 2026, digital assets remain a major revenue driver, contributing billions in activity over the past year.
Regulatory Tailwinds Support Expansion
The deal comes as regulators begin to clarify the role of self-custody tools. On April 13, the U.S. Securities and Exchange Commission issued guidance indicating that certain wallet interfaces may be treated as tools rather than brokers.
READ MORE: Tether Launches Self-Custody Wallet, Expanding Beyond Stablecoins
The framework provides a temporary safe harbor for companies offering self-custody services, reducing regulatory uncertainty. That clarity is expected to encourage more firms to build or acquire wallet infrastructure.
For eToro, the shift lowers barriers to entering a segment that was previously seen as more legally complex.
Part of a Broader Industry Trend
The acquisition also fits into a wider pattern across the crypto industry. As competition intensifies, firms are increasingly choosing to acquire technology rather than build it internally.
Large platforms are racing to expand their capabilities, particularly in areas like custody, trading infrastructure and on-chain access. The goal is to offer a more complete ecosystem that can compete with established players such as Coinbase.
eToro’s recent expansion into New York earlier this month further underscores that ambition. The company is pushing to grow its footprint in the U.S. while strengthening its technical stack globally.
A Step Toward On-Chain Integration
Zengo’s MPC model represents a different approach to wallet security, one that may appeal to users who are hesitant to manage private keys themselves. By integrating that system, eToro is effectively lowering the barrier to self-custody.
The move suggests a future where brokerage platforms do more than execute trades. They may also provide direct access to decentralized applications and blockchain-based assets, all within a single interface.
For now, the acquisition marks another step in the convergence between traditional finance and crypto infrastructure – as firms look to control more of the user experience from trading to custody.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
