eToro Acquires Crypto Wallet Zengo to Expand Self-Custody Services

eToro has agreed to acquire crypto wallet provider Zengo in a move that adds self-custodial capabilities to its trading platform. The acquisition signals eToro's broader push into on-chain financial services by integrating Zengo's wallet infrastructure with its multi-asset distribution network. This reflects an industry shift toward user-controlled digital asset models.

The deal underscores how established trading platforms are adopting non-custodial technology to support emerging use cases in decentralized finance (DeFi) and tokenized markets. Zengo specializes in wallets built on multi-party computation technology, eliminating the need for traditional private key storage and aiming to improve security and user accessibility.

eToro CEO Yoni Assia stated that self-custody is a key component of the evolving financial system, aligning with the firm's strategy to bridge traditional finance with on-chain infrastructure. The integration is expected to enable a wider range of on-chain services, including tokenized assets and decentralized trading models.

Zengo's keyless security model distributes cryptographic operations to reduce risks associated with key loss. The wallet also offers features like token swaps and staking. Zengo CEO Ouriel Ohayon noted the acquisition provides a path to scale its accessibility-focused technology on eToro's global platform.

This move highlights a trend toward hybrid custody models in digital asset markets, combining centralized efficiency with self-custody options. For users, the integration promises greater flexibility in asset management and access to decentralized services, though it also requires understanding the associated risks and responsibilities of self-custody.