Tel Aviv-based eToro agrees to acquire crypto wallet provider Zengo, a source says for ~$70M, mostly in cash; Zengo lets traders swap between tokens and fiat
EToro Group Ltd. has agreed to acquire Zengo, a crypto wallet provider, as the trading and investment platform expands its reach into decentralized finance.
Context & Ripple Effects
eToro’s crypto push predates this deal: related coverage traces blockchain-expansion funding in 2018 and a U.S. crypto trading platform and wallet launch in 2019.
After completing an IPO in 2025, eToro is using its platform position to add a specialized wallet capability rather than relying solely on its existing trading interface.
First-order effects
- eToro would bring Zengo’s token-to-fiat swap capability into its business, extending its reach from brokerage and trading toward crypto-wallet services.
- Zengo would move from an independent wallet provider to part of eToro, with the reported deal predominantly funded in cash.
Second-order effects
- An integrated eToro wallet-and-trading experience could reduce the need for its customers to move between a brokerage interface and a separate provider for token swaps.
- Independent wallet providers may face stronger competition from trading platforms that can pair wallet functions with an existing customer base and investment products.
Third-order effects
- If similar acquisitions continue, crypto brokerage platforms may increasingly compete on ownership of the wallet, custody, and conversion layer—not just on trading access.
- That shift would concentrate more of the user journey inside large platforms, creating a tension between expanded convenience and the decentralized-finance positioning these services seek to serve.
The trend: The deal is one instance of trading platforms broadening into crypto infrastructure to control more of the customer journey from investment account to wallet and asset conversion.