On 15 April 2026, multi-asset trading platform eToro announced that it has agreed to acquire self-custodial crypto wallet provider Zengo for approximately $70 million in a largely cash-based deal.
The acquisition aims to enhance eToro's digital asset offerings by integrating Zengo's keyless wallet technology, enabling expanded access to DeFi products for its 35 million users worldwide.
Following the announcement, eToro's shares jumped nearly 5% to $38, boosting the company's market capitalization to $3 billion and signaling strong investor confidence in the strategic move.
"We believe the future of finance will be increasingly digital, decentralized and user-controlled"
The acquisition represents eToro's commitment to bridging traditional finance with DeFi as the crypto industry matures. Founded in 2007 and headquartered in Tel Aviv, Israel, eToro has evolved from a social trading platform into a multi-asset brokerage offering stocks, ETFs, commodities, and cryptocurrencies. Crypto trading already accounts for 20-30% of the platform's activity.
"We believe the future of finance will be increasingly digital, decentralized and user-controlled, with self-custody playing an important role in that evolution," said Yoni Assia, eToro's co-founder and CEO. "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."
The deal follows eToro's December 2025 launch of its own non-custodial wallet, demonstrating the company's ongoing investment in user-controlled digital asset infrastructure.
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Zengo's Keyless Wallet Technology
Established in 2018, Zengo pioneered the use of multi-party computation (MPC) cryptography in crypto wallets. MPC eliminates traditional seed phrases and private keys by distributing control across multiple parties, preventing single points of failure that can lead to lost funds or theft. This security model addresses one of the biggest barriers to mainstream crypto adoption.
Zengo's wallet supports over 1,000 cryptocurrencies and offers comprehensive features including fiat on/off-ramps, token swaps, staking, and decentralized application (dApp) access. Unlike custodial wallets where platforms hold user funds, Zengo's architecture prioritizes user sovereignty while maintaining ease of use.
"Joining eToro allows us to accelerate that mission at a global scale," said Ouriel Ohayon, Zengo's CEO. "Together, we can expand access to self-custody and on-chain finance while connecting it to a broader investing ecosystem that bridges traditional and on-chain finance."
Market Impact and DeFi Integration
The acquisition positions eToro to capture growth in emerging DeFi sectors. Once integrated, eToro users will gain access to decentralized products including prediction markets, perpetual futures, and yield-generating opportunities. Perpetual futures alone have seen monthly volumes exceed $100 billion in 2026, while prediction markets have experienced significant growth.
Self-custodial wallets have gained traction following the collapse of FTX in 2022 and subsequent regulatory scrutiny on centralized exchanges. The concept of "not your keys, not your crypto" has resonated with users after high-profile hacks resulted in $3.7 billion in crypto losses in 2025, according to Chainalysis data.
Industry observers note the strategic importance of wallet infrastructure. As Finovate analysts point out, "owning the wallet layer could determine who controls the customer relationship" as cryptocurrency becomes embedded financial infrastructure. The move also aligns with growing institutional interest in tokenized real-world assets, which Boston Consulting Group projects could reach $16 trillion by 2030.
No Immediate User Impact
According to eToro's announcement, there will be no immediate changes for current users of either platform. The integration of Zengo's technology into eToro's ecosystem will occur over time, with details on timing and specific features to be announced later.
The deal, valued at $70 million, was praised by Zengo investor Elron Ventures. CEO Yaniv Shnieder called it "continued value realization" in infrastructure investments, demonstrating the strategic value of companies operating at infrastructure layers in the crypto ecosystem.