eToro said it will acquire Israeli crypto wallet startup Zengo for $70 million, mostly in cash. After the deal closes, Zengo’s non-custodial wallet technology will be integrated into eToro’s multi-asset platform to support tokenized assets, prediction markets, and perpetual contracts. The transaction stands out as a major acquisition disclosed by eToro after its Nasdaq listing.
Zengo’s value centers on its MPC wallet design
Founded in 2018, Zengo built its wallet around MPC, or multi-party computation. Traditional wallets usually depend on a seed phrase, and losing that phrase can mean losing access. Zengo takes a different route: the private key does not exist in a complete form, and signing relies on two distributed secret shares instead. One is stored on the user’s phone, while the other is backed up on a cloud server. Neither side alone can complete a signature.
The setup is aimed at one of crypto’s oldest user problems. Self-custody offers control, but it also shifts security failures onto the holder. Zengo also includes on- and off-ramp support, token swaps, staking, and dApp access, giving eToro a wallet product with a broader feature set rather than a basic storage tool.
Why eToro is moving into non-custodial infrastructure
According to the report, eToro generated $12.6 billion in revenue in 2024, with crypto trading accounting for 95% of that total. That makes crypto the clear center of its business mix, even though the company operates as a multi-asset platform. Before this deal, eToro’s model was mainly custodial, with user assets kept inside platform accounts.
By acquiring Zengo, eToro gains a direct path into self-custody. That gives users a way to move assets into a non-custodial wallet while linking that wallet to areas the company is now targeting, including RWA tokenization, prediction markets, and perpetuals. The deal points to a broader product shift, not just a wallet feature add-on.