eToro to Buy Zengo for $70M, Shares Jump 5% to $38
eToro will acquire crypto wallet Zengo in a $70M deal, enabling it to bolster its non-custodial wallet offerings and self-custody capabilities. Shares rose nearly 5% to $38, valuing the platform at $3B, as it aims to support emerging tokenized assets and decentralized trading models.
1. Acquisition Details
eToro has agreed to acquire Zengo in a $70 million transaction to integrate Zengo’s security-focused crypto wallet, which supports over 1,000 digital assets without seed phrases, into its non-custodial platform. This deal marks eToro’s second major push into self-custody since debuting its own wallet in December.
2. Strategic Rationale
The acquisition aims to strengthen eToro’s ability to support tokenized assets, prediction markets and decentralized perpetual trading models as part of its broader strategy to expand digital, decentralized finance offerings. CEO Yoni Assia highlighted that enhanced self-custody tools will drive engagement among younger, crypto-native users.
3. Market Reaction and Context
Following the announcement, eToro shares climbed nearly 5% to $38, giving the company a $3 billion market capitalization. The move comes as the overall cryptocurrency market remains down 40% from its October peak, now valued at roughly $2.6 trillion, underscoring investor focus on platform innovation.