- eToro has acquired self-custodial wallet provider Zengo to deepen its digital asset capabilities and expand into on-chain finance.
- The deal brings keyless wallet infrastructure in-house, positioning eToro to move beyond trading into custody, authentication, and transaction control.
- As crypto evolves into infrastructure, owning the wallet layer could determine who controls the customer relationship.
Social trading and investment network eToro announced it has acquired self-custodial crypto wallet provider Zengo for an undisclosed amount. eToro plans to leverage the acquisition to deepen its digital asset capabilities and bridge traditional finance with on-chain infrastructure.
Zengo was founded in 2018 and offers a crypto wallet with buy, sell, and swap capabilities to both individual and commercial users. The Israel-based company positions itself as a secure crypto wallet, offering Bitcoin vaults, theft protection, a Web3 firewall, and enterprise-grade compliance and controls for commercial users. Notably, Zengo is a pioneer in multi-party computation cryptography and is known for its keyless wallet architecture.
“We believe the future of finance will be increasingly digital, decentralized, and user-controlled, with self-custody playing an important role in that evolution,” said eToro Co-founder and CEO Yoni Assia. “Zengo has built an innovative and secure wallet experience, and this acquisition will enable us to accelerate its growth while continuing to provide users with choice in how they access digital assets.”
eToro will combine its multi-asset platform with Zengo’s non-custodial wallet technology to expand on its own digital asset capabilities while growing Zengo’s platform. “From day one, Zengo has focused on making self-custody simple and secure for everyday users,” said Zengo Co-founder and CEO Ouriel Ohayon. “Joining eToro allows us to accelerate that mission at a global scale. Together, we can expand access to self-custody and on-chain finance while connecting it to a broader investing ecosystem that bridges traditional and on-chain finance.”
Founded in 2007, eToro launched Bitcoin trading capabilities in 2013, but didn’t launch a dedicated crypto trading platform in the US until 2019. Today’s acquisition will help eToro expand into tokenized assets and emerging decentralized trading models such as prediction markets and perpetuals.
As the banking world increasingly normalizes decentralized finance, it may no longer be enough for fintechs and investment firms to simply offer traditional finance investing tools, especially as crypto evolves from an asset class into infrastructure.
By acquiring Zengo, eToro is positioning itself to participate more directly in on-chain activity, rather than simply offering access to facilitate trades. The deal is another example of fintechs pushing deeper into infrastructure. Self-custody wallets are emerging as the interface layer for on-chain finance. By bringing that capability in-house, eToro is positioning itself to control digital assets, storage, authentication, and transactions.
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