Trading platform eToro has agreed to acquire crypto wallet provider Zengo in a deal valued at approximately $70 million, marking a significant step toward integrating self-custody tools into its ecosystem.
The acquisition combines eToro’s global multi-asset trading network with Zengo’s non-custodial wallet technology, enabling users to directly control their digital assets.
Unlike custodial solutions, non-custodial wallets allow individuals to hold their own private keys, enhancing security and ownership.
Zengo differentiates itself through its use of multi-party computation (MPC), a cryptographic method that eliminates the need for traditional seed phrases. This approach reduces the risk of lost or stolen keys, a common issue in self-custody, while maintaining high security standards.
eToro said the deal aligns with its broader strategy to bridge traditional finance and blockchain-based infrastructure.
By integrating Zengo’s technology, the platform aims to support emerging use cases such as tokenized assets, decentralized trading, prediction markets, and perpetual futures.
Yoni Assia, co-founder and CEO of eToro, emphasized that the future of finance is moving toward decentralized and user-controlled systems.
He noted that self-custody will play a key role in this transformation, and the acquisition will help accelerate innovation while offering users greater flexibility in managing digital assets.
Zengo has established itself as a leading player in the self-custody space, offering features such as token swaps, staking, fiat on- and off-ramps, and access to decentralized applications.
The move comes as eToro continues to diversify its business, with strong growth reported in other asset classes, particularly commodities trading.
Analysts view the acquisition as part of a broader trend among financial platforms to integrate crypto-native tools and expand their role in the evolving digital asset ecosystem.
