eToro has agreed to acquire crypto wallet provider Zengo in a deal reportedly valued at $70 million, adding self-custody infrastructure to its platform. The move signals a shift by brokerages toward direct participation in onchain financial services.
eToro Group Ltd.The acquisition integrates Zengo’s non-custodial wallet technology into eToro’s existing trading ecosystem. Founded in 2018, Zengo uses multi-party computation (MPC) cryptography to eliminate seed phrases while enabling token swaps, staking, and decentralized application access. The wallet has attracted more than 2 million users globally, according to the company.
Can Brokerages Compete In Self Custody Infrastructure?
The deal reflects a broader trend of trading platforms expanding beyond execution into full-stack crypto offerings. Self-custody tools are increasingly seen as critical infrastructure for tokenized assets, decentralized finance (DeFi), and derivatives markets. By comparison, most traditional brokerages still rely on custodial models that limit direct blockchain interaction for users.
eToro CEO Yoni Assia said self-custody will play a central role in a more decentralized financial system, framing the acquisition as a long-term strategic investment. Zengo CEO Ouriel Ohayon added that integration with eToro’s platform enables broader distribution while maintaining user control over digital assets.
Zengo’s MPC-based design removes a common failure point in crypto security by avoiding seed phrase exposure, a frequent vector in wallet compromises. The company also introduced features such as inheritance-based recovery and expanded its product suite through the acquisition of stablecoin wallet provider Minke. It reports no recorded wallet hacks since launch.
The acquisition comes during a period of expansion for eToro, which recently enabled crypto trading in New York after securing a BitLicense and reported increased profitability driven partly by derivatives activity. The platform is positioning itself to capture demand across both centralized and decentralized financial products.
As tokenized assets and onchain trading infrastructure mature, control over wallet technology is becoming a competitive differentiator. The next catalyst will be how eToro integrates self-custody features into its user experience without increasing friction for retail investors.
