Briefly
- eToro acquired self-custodial pockets supplier Zengo, reportedly for $70 million.
- Zengo’s keyless pockets expertise makes use of multi-party computation (MPC) cryptography and serves over 2 million customers.
- The acquisition positions eToro to assist rising DeFi use instances, together with prediction markets and perpetuals.
Buying and selling platform eToro has entered into an settlement to accumulate self-custodial crypto pockets supplier Zengo—a deal that Bloomberg studies was price $70 million, paid principally in money—combining its 40 million registered customers with Zengo’s keyless pockets expertise.
The acquisition brings collectively eToro’s international buying and selling infrastructure with Zengo’s multi-party computation (MPC) cryptography, which has powered safe pockets companies for over 2 million people and companies throughout 180+ international locations since 2018.
“We consider the way forward for finance will likely be more and more digital, decentralized and user-controlled, with self-custody taking part in an necessary function in that evolution,” stated eToro co-founder and CEO Yoni Assia, in a press release. “Zengo has constructed an revolutionary and safe pockets expertise, and this acquisition will allow us to speed up its progress whereas persevering with to offer customers with alternative in how they entry digital property.”
“As we regularly say, crypto downtimes are the time to construct, and this acquisition displays that long-term method,” he added.
Assia stated that commodity buying and selling represents 60% of the platform’s buying and selling commissions by asset class as of Q1 2026—with volumes almost 4 occasions increased 12 months over 12 months, in response to the announcement.
Zengo beforehand raised $20 million in a Collection A spherical in 2021, finally elevating a complete of $24 million per information from Crunchbase. The startup’s traders embody Perception Companions and Tether, and Zengo has additionally acquired stablecoin-focused pockets Minke to increase its choices.
eToro shares are up greater than 6% up to now Wednesday, not too long ago buying and selling arms at $36.80. Shares are up greater than 18% within the final week, rising alongside many different crypto companies because the market reveals indicators of restoration.
In 2024, the corporate settled expenses with the SEC over working an unregistered dealer and clearing company for crypto property, and agreed to solely provide U.S. merchants Bitcoin, Ethereum, and Bitcoin Money as a part of the settlement. Nonetheless, the corporate has vastly expanded its crypto choices to U.S. prospects since, below President Trump’s crypto-friendly regulatory push.
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