eToro to buy Zengo for $70M, adds self-custody wallets

eToro has agreed to acquire noncustodial crypto wallet provider Zengo for about $70 million, bringing Zengo’s multi‑party computation (MPC) wallet technology and on‑chain access into eToro’s brokerage platform. The companies said the deal will fold Zengo’s software and product team into eToro’s digital asset offering and is subject to customary closing conditions.

eToro did not disclose official terms; people familiar with the matter put the value at roughly $70 million. The firms said they will publish more details on product rollouts and timelines after the transaction closes.

Zengo, founded in 2018, built its wallet using MPC cryptography to remove the need for traditional seed phrases. The wallet supports token swaps, staking and access to decentralized applications. Zengo reports more than 2 million users and says it has not recorded a wallet hack since launch.

Executives at eToro said the acquisition will link the trading platform with on‑chain infrastructure and provide users with direct access to blockchain services from the brokerage environment. The company highlighted potential uses such as tokenized assets, prediction markets and perpetuals as areas it expects to develop as on‑chain markets evolve.

Yoni Assia, eToro’s CEO, described self‑custody as “central” to a more decentralized financial system. Ouriel Ohayon, Zengo’s chief executive, said the agreement will allow the wallet to scale globally while connecting self‑custody tools to a broader investing ecosystem.

The acquisition comes during a period of expansion for eToro. The firm completed a public listing on Nasdaq last year, reported higher profitability in the fourth quarter in part from gains in crypto derivatives trading, and began offering crypto trading in New York after securing a BitLicense.

Zengo has added features over time, including an inheritance‑style recovery system for digital assets and the acquisition of the stablecoin‑focused wallet Minke. The startup raised $20 million in a 2021 Series A and later sought additional funding at an estimated $100 million valuation.

Once integrated, eToro plans to offer self‑custody options to its users and to use Zengo’s MPC technology to connect retail brokerage services with on‑chain functionality. Further product and integration details will be released after closing.