eToro Expands Crypto Capabilities With $70 Million Zengo Deal

Trading and investing platform eToro is set to acquire cryptocurrency wallet provider Zengo.

The deal, announced Wednesday (April 15), is designed to expand eToro’s digital asset capabilities and support Zengo’s growth by combining eToro’s multi-asset platform and distribution with Zengo’s non-custodial wallet technology.

The company did not reveal the price tag for the acquisition, but a report by Bloomberg News, citing a source familiar with the matter, put the value of the deal at $70 million.

eToro says the acquisition will also bolster its ability to support “evolving digital asset use cases,” such as tokenized assets and emerging decentralized trading models like prediction markets and perpetuals.

“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 Yoni Assia, co-founder and CEO of eToro. “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.”

Ouriel Ohayon, co-founder and CEO of Zengo, said the deal helps the company further its mission of simplifying self-custody for everyday crypto users.

“Joining eToro allows us to accelerate that mission at a global scale,” Ohayon said. “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.”

After going public last year, eToro said it had the cash to allow the company to pursue merger and acquisition deals.

“We’re looking to do more ambitious stuff involving acquisitions,” Assia told Bloomberg at the time, adding that this included deals that would let eToro add more asset classes and locales to its platform.

In other crypto news, PYMNTS wrote last week about the regulatory transformation happening in the industry, centered around the stablecoin.

“Absent the volatility of their cryptocurrency cousins, these dollar-pegged tokens are being reframed as extensions of the existing financial system and weighed by corporates for their benefits in streamlining cross-border payments and optimizing treasury operations,” that report said. “The first and only crypto policy signed into law, the GENIUS Act, is a stablecoin-specific framework. And regulators are now operationalizing it to create a unified supervisory regime.”

A PYMNTS Intelligence and Citi report, “Chain Reaction: Regulatory Clarity as the Catalyst for Blockchain Adoption,” argues that blockchain’s next leap will be determined by regulation, with evolving guidance creating the foundations for safe, scalable blockchain adoption.

“Still, the report found that implementation challenges continue to complicate blockchain’s institutional and systemic progress,” PYMNTS added.