eToro buys ZenGo in a $70M deal to add keyless MPC wallet technology and expand into DeFi, prediction markets, and perpetuals.
Trading platform eToro has agreed to acquire self-custody crypto wallet provider ZenGo for approximately $70 million, a significant push into decentralized finance infrastructure by the publicly traded fintech firm.
eToro announced on April 15 that it will acquire ZenGo, an Israeli-founded startup that builds keyless crypto wallets powered by multi-party computation (MPC) cryptography. The deal, reported by Bloomberg and CoinDesk, is valued at roughly $70 million and will be paid primarily in cash.
Founded in 2018, ZenGo serves over 2 million users across more than 180 countries. Its wallet eliminates the need for traditional seed phrases by splitting private keys across multiple parties, reducing the risk of single-point-of-failure theft. eToro noted that ZenGo's Web3 wallet features fall outside its regulated brokerage business, allowing the company to offer decentralized services separately.
The acquisition positions eToro to compete in the growing self-custody market, where users increasingly prefer holding their own assets rather than relying on centralized exchanges. ZenGo's MPC technology lowers the barrier to secure self-custody by removing seed phrases, a pain point that has led to billions in lost crypto over the years.
eToro also highlighted plans to use ZenGo's infrastructure for emerging use cases including prediction markets and perpetual futures, both categories seeing rapid growth in 2026. The deal signals that publicly traded fintech firms view self-custody and DeFi access as essential product features rather than niche offerings.
Integration details have not been disclosed yet. Key questions include whether eToro will embed ZenGo's wallet directly into its trading app or operate it as a standalone product. The competitive landscape is also shifting, with Coinbase, Binance, and OKX all expanding their own wallet offerings. How quickly eToro can bring ZenGo's technology to its estimated 38 million registered users will determine the deal's impact.
The eToro-ZenGo deal underscores a broader industry trend: regulated financial platforms are acquiring self-custody and DeFi capabilities rather than building them from scratch. As regulatory frameworks mature and user demand for asset control grows, similar acquisitions are likely to follow.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
