eToro Acquires Self-Hosted Crypto Wallet Provider Zengo

eToro announced on April 15, 2026 that it has entered into an agreement to acquire Zengo, a self-hosted crypto wallet provider founded in 2018, in a deal that combines eToro’s 40-million-user trading platform with Zengo’s keyless, non-custodial wallet technology.

The acquisition pairs eToro’s global multi-asset brokerage with Zengo’s MPC-based wallet architecture, which eliminates the traditional seed phrase vulnerability that has long been a friction point in self-custody adoption. Zengo says no wallet on its platform has ever been hacked.

The transaction is subject to customary closing conditions. Financial terms were not disclosed in the official announcement.

What eToro is buying and why it matters

Zengo is a self-hosted crypto wallet, meaning users retain control of their private keys rather than entrusting them to a centralized exchange or custodian. Unlike most self-custody wallets that rely on a single seed phrase for backup and recovery, Zengo uses multi-party computation (MPC) cryptography to split key management across multiple parties.

That architecture removes the single point of failure that has led to billions of dollars in lost crypto when users misplace or expose their seed phrases. Zengo reports over 2 million users across 180+ countries, and no successful hack against its wallet infrastructure to date.

For eToro, which serves 40 million registered users across 75 countries, the acquisition adds a self-custody layer to a platform that has historically operated as a custodial brokerage.

eToro registered users

Executive statements signal a decentralized product roadmap

eToro CEO Yoni Assia framed the deal as a step toward user-controlled finance.

Zengo co-founder and CEO Ouriel Ohayon emphasized the wallet’s accessibility focus.

eToro said the deal is intended to strengthen support for tokenized assets and decentralized trading models, including prediction markets and perpetuals. That language suggests the combined entity will push beyond simple buy-and-hold crypto into more complex DeFi-adjacent products.

Self-custody meets regulated brokerage distribution

The acquisition is notable for how it positions eToro relative to both pure DeFi wallets and traditional exchanges. DeFi-native self-custody providers like Safe have built significant scale, with over 57 million wallets deployed and $60 billion in secured assets across 200+ integrations. But those solutions primarily serve DeFi-native users comfortable with on-chain interactions.

Zengo’s retail-friendly design, combined with eToro’s brokerage distribution across 75 countries, creates a different entry point. The deal could expose millions of users who currently trade crypto through custodial accounts to self-custody for the first time, without requiring them to manage seed phrases or navigate complex wallet setups.

eToro’s regulatory disclosures in the press release clarify that Zengo’s non-custodial wallet will remain separate from eToro’s regulated exchange services. Wallet-based Web3 functions such as decentralized apps, token swaps, and staking are not regulated activities and are not offered, managed, or guaranteed by any eToro regulated entity.

eToro itself holds licenses and registrations with the FCA, CySEC, ASIC, Seychelles FSA, ADGM FSRA, MAS, the SEC/FINRA/SIPC framework for eToro USA Securities, FinCEN, and New York state authorities. That regulatory footprint gives the combined offering a compliance baseline that standalone wallet providers typically lack.

How the deal fits the crypto M&A cycle

The eToro-Zengo deal arrives as crypto platforms increasingly seek to own their infrastructure stack rather than rely on third-party integrations. Exchange operators have been expanding into custody, wallet, and on-ramp services to reduce churn and deepen user engagement.

Self-custody tooling has become a differentiator as institutional and retail users alike push back against counterparty risk following a string of exchange failures in prior years. Platforms that can offer both custodial and non-custodial options position themselves to serve a wider range of risk preferences.

The deal also intersects with a broader push toward bringing traditional market data and financial instruments on-chain. eToro’s explicit mention of tokenized assets in the announcement suggests the wallet infrastructure could serve as a bridge between its existing multi-asset brokerage and emerging on-chain financial products.

Market backdrop: Bitcoin near $74,000 amid cautious sentiment

The acquisition was announced with Bitcoin trading near $73,934, down roughly 0.87% over the prior 24 hours. Bitcoin’s market capitalization stood at approximately $1.48 trillion.

Bitcoin price

$73,934

The crypto Fear & Greed Index registered 23, firmly in “Extreme Fear” territory. That cautious market environment makes the deal’s strategic logic clearer: eToro is building infrastructure for the next cycle rather than chasing momentum.

The price level is close to the $74,200 cost basis that Bitcoin ETF holders have accumulated around, a zone that has become a key reference point for institutional positioning.

Meanwhile, signs of renewed cross-asset activity, including a rebound in the Ethereum-to-Bitcoin price ratio, suggest that broader crypto market participation may be picking up even as headline sentiment remains subdued.

FAQ about eToro’s acquisition of Zengo

What is Zengo?

Zengo is a self-hosted cryptocurrency wallet founded in 2018 that uses multi-party computation (MPC) cryptography instead of traditional seed phrases. It serves over 2 million users in more than 180 countries.

What does “self-hosted” or “self-custody” mean?

A self-hosted wallet lets users hold their own private keys rather than trusting a third party like an exchange. This gives users direct control over their crypto assets but also places responsibility for security on the user.

Why did eToro acquire Zengo?

eToro said the deal is designed to combine its brokerage distribution with Zengo’s non-custodial wallet technology, supporting tokenized assets and decentralized trading models including prediction markets and perpetuals.

Will Zengo’s wallet change after the acquisition?

eToro’s announcement states that Zengo’s non-custodial wallet will remain separate from eToro’s regulated exchange services. Wallet-based Web3 functions are not managed or guaranteed by any eToro regulated entity.

How much did eToro pay for Zengo?

The acquisition price was not disclosed in the official announcement. The deal is subject to customary closing conditions.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.