eToro buys Zengo for $70M to bring self-custody to its 40M users
eToro has agreed to acquire keyless wallet provider Zengo in a deal Bloomberg reports at roughly $70 million, paid mostly in cash. The move pairs eToro’s 40 million registered users and global trading infrastructure with Zengo’s multi‑party computation (MPC) cryptography and “keyless” self‑custody experience — technology that has protected wallets for more than 2 million users and businesses across 180+ countries since 2018.
“We believe the future of finance will be increasingly digital, decentralized and user‑controlled, with self‑custody playing an important role in that evolution,” eToro co‑founder and CEO Yoni Assia said. “Zengo has built an innovative and secure wallet experience, and this acquisition will enable us to accelerate its growth while continuing to provide users with choice in how they access digital assets.” He added that “crypto downtimes are the time to build,” framing the deal as a long‑term strategic play.
Why it matters
- Self‑custody and MPC: Zengo’s keyless wallet uses MPC to avoid exposing a single private key — a user‑friendly approach to self‑custody that reduces risk from single‑point failures and phishing. Integrating that tech into eToro could give the brokerage a way to offer true user‑controlled wallets alongside its custodial services.
- Scale and distribution: eToro brings a large global user base, while Zengo brings proven wallet tech and product momentum (including its acquisition of stablecoin wallet Minke).
- Market timing: eToro said commodity trading accounted for 60% of its trading commissions by asset class in Q1 2026, with volumes nearly four times higher year‑over‑year, signaling healthy core business performance as it expands crypto capabilities.
Background and financing
Zengo previously raised about $20 million in a 2021 Series A and roughly $24 million in total funding, according to Crunchbase. Investors include Insight Partners and Tether. eToro’s shares reacted positively to the announcement, rising more than 6% on Wednesday to about $36.80 and up over 18% in the last week amid a broader crypto market recovery.
Regulatory context
The deal arrives after a notable year for eToro in the U.S. In 2024 the company settled charges with the SEC over operating as an unregistered broker and clearing agency for crypto assets and agreed to limit its U.S. retail offerings at the time to Bitcoin, Ethereum and Bitcoin Cash. Since then, eToro has expanded its crypto offerings to U.S. customers amid a more permissive regulatory environment under the current administration.
Bottom line
The acquisition signals eToro’s bet that self‑custody will be an important part of crypto’s next phase. Marrying Zengo’s MPC wallet tech with eToro’s distribution could accelerate mainstream access to noncustodial wallets — if eToro can navigate regulatory constraints and deliver a seamless, secure user experience.
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