In a strategic move, eToro has acquired Zengo, a self-custodial crypto wallet provider, for an amount of $70 million. Bloomberg reports that the majority of this payment was made in cash, thereby merging eToro’s 40 million registered users with Zengo’s innovative keyless wallet technology.
This acquisition integrates eToro’s extensive trading infrastructure with Zengo’s multi-party computation (MPC) cryptography, which has facilitated secure wallet services for over 2 million entities across more than 180 countries since 2018.
Yoni Assia, co-founder and CEO of eToro, expressed in a statement that the future of finance is expected to be increasingly digital, decentralized, and user-controlled. He emphasized Zengo’s role in this transition by highlighting its secure wallet technology. “This acquisition will speed up Zengo’s growth while continuing to offer users diverse options for accessing digital assets,” Assia remarked.
“As we often say, crypto downtimes are the time to build, reflecting our long-term approach,” he added. According to eToro’s announcement, commodity trading constitutes 60% of its trading commissions by asset class as of Q1 2026, with year-over-year volumes nearly quadrupled.
Zengo had previously secured $20 million in a Series A funding round in 2021 and eventually raised a total of $24 million, according to Crunchbase. Its investors include Insight Partners and Tether, with the startup also acquiring Minke, a stablecoin-focused wallet, to broaden its offerings.
eToro’s shares have risen by over 6% on Wednesday, trading at $36.80 recently. The shares have seen an increase of more than 18% in the past week, reflecting the market’s signs of recovery alongside other crypto firms.
In 2024, eToro settled charges with the SEC regarding its operation as an unregistered broker and clearing agency for crypto assets. As part of this agreement, it agreed to offer only Bitcoin, Ethereum, and Bitcoin Cash to U.S. traders. However, following President Trump’s regulatory push favoring cryptocurrencies, eToro has significantly expanded its offerings to U.S. customers.