eToro Buys Crypto Wallet Zengo To Expand Self-Custody

The deal brings Zengo’s non-custodial wallet technology into eToro’s financial trading ecosystem, giving users greater control over their assets while expanding access to decentralized finance (DeFi) products.

The acquisition comes as brokers increasingly look to bridge traditional finance (TradFi) and crypto-native systems, positioning self-custody as a core feature rather than a niche offering. The acquisition sum was not disclosed.

Zengo, founded in 2018, is known for its use of multi-party computation (MPC) technology, which removes the need for traditional private keys and aims to simplify self-custody for retail users. Its wallet supports token swaps, staking and access to decentralized applications (dApps).

eToro said in an announcement on 15 Apr that the integration would enable users to access a broader range of onchain products over time, including emerging areas such as prediction markets, perpetual futures and yield-generating strategies.

The move reflects a broader shift across the industry, where platforms are increasingly incorporating self-custody alongside custodial services to meet demand for greater asset control and participation in decentralized markets.

Chief executive Yoni Assia said the acquisition aligns with the view that finance is becoming more digital and user-controlled, with self-custody forming a key part of that transition.

The deal also comes against a backdrop of changing user behaviour on eToro’s platform. While the company has reported strong overall financial performance, recent results showed a decline in crypto trading activity, with retail investors
rotating toward traditional assets such as equities and commodities.

Expanding into self-custody and decentralized products may help eToro retain users within its ecosystem even as trading patterns evolve. By integrating wallet infrastructure directly into its platform, the firm can offer a broader set of services without relying solely on transaction-driven revenue.

The acquisition also positions eToro to compete more directly with crypto-native platforms that already offer integrated wallets and DeFi access, while maintaining its multi-asset offering.

There will be no immediate changes for users, but the company said it plans to gradually integrate Zengo’s technology, suggesting a longer-term strategy focused on connecting traditional brokerage services with onchain finance.