eToro Acquires Zengo for $70M, Expanding Self-Custody Crypto Capabilities

eToro has taken a significant step in the cryptocurrency space by acquiring Zengo, a self-custodial crypto wallet, for approximately $70 million. This strategic acquisition aims to bolster eToro's capabilities in offering decentralized financial services while maintaining regulatory compliance under the MiCA framework.

Founded in 2018, Zengo is known for its innovative approach to cryptocurrency security, utilizing multi-party computation cryptography to eliminate the need for traditional seed phrases that can lead to loss of access to funds. The company has built a solid reputation, boasting over 2 million users across 180 countries without a single wallet hack to date. This aligns well with eToro's goal of enhancing its crypto offerings in a rapidly evolving market.

eToro, which has 40 million registered users and became publicly listed on Nasdaq in May 2025, has been looking to expand its services beyond its regulated exchange. The acquisition of Zengo allows eToro to provide users with access to decentralized applications, token swaps, and other Web3 services without integrating these operations into its regulated framework. This design is intentional, allowing eToro to mitigate regulatory liabilities while still offering a wider range of services to its users.

The deal, which is subject to closing conditions, represents a strategic move as the deadline for full MiCA compliance approaches. With the shifting regulatory landscape in Europe, eToro's acquisition of Zengo positions it uniquely within the fintech sector by bridging the gap between regulated exchanges and the decentralized finance space.

This acquisition also complements eToro's recent initiatives, including the launch of the eToro App Store, which aims to provide an AI-enabled ecosystem for trading and investing. By integrating Zengo's self-custodial wallet into its platform, eToro is not just expanding its service offerings but also reinforcing its commitment to a future of finance that is more decentralized and user-controlled.

As the fintech landscape evolves, eToro's acquisition of Zengo illustrates a strategic alignment with the growing demand for self-custody solutions and decentralized finance, ensuring it remains competitive in a complex and rapidly changing market.