Trading platform eToro has agreed to acquire self-custodial crypto wallet provider Zengo for $70 million, paid primarily in cash, according to Bloomberg. The deal combines eToro’s 40 million registered users with Zengo’s multi-party, keyless IT wallet infrastructure, giving the publicly traded broker direct ownership of a layer of custody it previously lacked.
The structural implication extends beyond the disclosed price. Retail brokerage firms and fintech platforms are increasingly acquiring custody and wallet infrastructure rather than licensing or partnering with them, a trend that reflects both competitive pressure and the difficulty of building MPC-level crypto systems from scratch.
eToro’s move follows comparable expansions by traditional financial players, as illustrated by Charles Schwab’s rollout of direct trading of Bitcoin and Ethereum across its 38.9 million active brokerage accounts – a signal that the regulated bridge to DeFi is now a primary competitive battleground.
We have news! Zengo partners with @eToro, the global leader in stocks and crypto trading.
Since our start in 2018, our mission at Zengo has been to raise the bar and set new standards in cryptocurrency conservation and the on-chain economy.
With eToro, we will continue… pic.twitter.com/zxbjIgnuQm
– Zengo Wallet (@ZenGo) April 15, 2026
We think this acquisition is less about Zengo’s 2 million users and more about what those users represent: proof that a keyless, seedphrase-less wallet can reach consumer scale. eToro purchases architecture and evidence simultaneously.
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Zengo Wallet Technology: What eToro Really Acquires
Zengo, founded in 2018 by CEO Ouriel Ohayon, Tal Be’ery and Omer Shlomovits, built its wallet around multi-party computational cryptography – a design that eliminates the traditional seed phrase by distributing control of the private key across multiple computing parties.
The result is a “keyless” wallet where no single point of failure can expose user funds, a significant security distinction in an environment where fraudulent wallet apps continue to drain user assets.
A trading platform acquiring a crypto wallet company.
Move from access → control.
As @yoniassia suggested that change is important.
– Praveen Vemulapalli (@PraveenVem) April 15, 2026
The company serves more than 2 million individuals and businesses in over 180 countries and previously acquired the stablecoin-focused Minke portfolio to expand its on-chain product footprint. Zengo has raised a total of $24 million according to Crunchbase data, including a $20 million Series A in 2021, with Insight Partners and Tether among its investors – making eToro’s $70 million acquisition price a significant multiple of the disclosed funding, which would be in the range of eight to ten times annual recurring revenue.
After the acquisition, Zengo is expected to operate as a standalone product while its full technology stack and development team integrate with eToro’s platform. eToro has indicated near-term integration plans that would unlock access to decentralized products – prediction markets, perpetuals and yield instruments – for its existing user base via Zengo’s infrastructure.
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Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. Hailing from crypto since 2017, Daniel leverages his experience in on-chain analytics to write evidence-based reports and in-depth guides. He holds certifications from the Blockchain Council and is dedicated to providing “insight gain” that overcomes market hype to find real utility for blockchain.
