eToro Pushes Into Self-Custody With Zengo Wallet Acquisition

eToro has agreed to acquire crypto wallet provider Zengo. This marks a move beyond trading and into direct crypto ownership tools. The deal is part of a broader push by the company to expand its role in digital assets as the market shifts toward more user-controlled models.

While eToro did not disclose the financial terms, the acquisition is widely reported to be valued at around $70 million. The focus of the deal is not just scale. It is also about capability. eToro is adding infrastructure that allows users to hold and manage crypto themselves. This reduces reliance on platform custody.

What Zengo brings to eToro

Zengo is a self-custodial crypto wallet built around multi-party computation technology. Instead of using a traditional seed phrase, it splits security across multiple components. This removes a single point of failure.

This approach is designed to make self-custody more accessible. Users can store assets, swap tokens, stake holdings, and connect to decentralized applications. They can do this without handling complex private keys. The Zengo wallet already serves a global user base. It is positioned as a simpler entry point into self-custody.

For eToro, this adds a new layer to its product stack. The platform has historically focused on trading. The addition of a wallet introduces a way for users to move beyond buying and selling. It allows them to hold and use crypto directly.

Why eToro is moving into self-custody

eToro acquiring the Zengo Wallet reflects a shift in how crypto platforms are evolving. Trading is no longer the only core service. Users increasingly expect control over their assets. They also want access to onchain tools.

eToro has indicated that the deal will support future products such as tokenized assets and staking services. It may also support more advanced trading formats. These types of products often require wallet-level functionality. They cannot rely only on a brokerage interface.

Adding self-custody also reduces reliance on a single platform model. Users do not have to keep all assets within one system. They can choose how and where to hold their crypto. That flexibility is becoming a standard expectation.

What it means for users

In the short term, the acquisition does not change how eToro users interact with the platform. Over time, the integration of Zengo’s technology is expected to expand what users can do with their assets.

This could include easier transfers between trading accounts and personal wallets. It may also include broader access to decentralized applications. Users may gain more control over long-term holdings. For newer users, the key benefit is simplicity. Zengo’s design removes technical barriers that have historically made self-custody difficult.

The result is a more flexible experience. Users can still trade within eToro. They may also gain the option to manage assets independently when needed.

>>> Read more: Will We See an eToro Blockchain?

A broader shift in crypto platforms

The eToro Zengo Wallet deal highlights a larger trend across the industry. Platforms are moving toward hybrid models. These combine trading, custody, and on-chain access in a single ecosystem.

This reflects a change in how crypto is used. As tokenized assets and decentralized services expand, platforms need to support both investing and direct participation in blockchain networks.

eToro’s move suggests that self-custody is becoming a core part of that strategy. Companies are starting to integrate wallets into the main user experience. They are no longer treating them as separate tools.

As the market evolves, the line between trading platforms and crypto infrastructure providers is becoming less clear. This acquisition positions eToro closer to that intersection. Control, access, and usability are all becoming equally important.