eToro buys Zengo for $70M to expand keyless MPC self-custody
eToro buys Zengo: Bloomberg reports the retail broker will acquire self-custody wallet provider Zengo for $70M, mainly paid in cash. The deal gives eToro ownership of Zengo’s “keyless” multi-party computation (MPC) wallet infrastructure, splitting private-key control across multiple parties and reducing the single point of failure risk of traditional seed phrases.
For traders, eToro buys Zengo because it shifts “access” to crypto toward “control” of custody tech. Zengo serves 2M+ users across 180+ countries and previously expanded via the acquisition of stablecoin wallet Minke. After closing, Zengo is expected to run as a standalone product initially, while eToro integrates the stack and development team.
Near-term integration targets connecting eToro’s user base to DeFi-adjacent products such as prediction markets, perpetuals, and yield instruments. The move also highlights how regulated firms are competing for crypto growth by building or buying wallet and custody layers—similar to Charles Schwab’s recent launch of direct BTC/ETH trading for its brokerage accounts.
Keywords: eToro buys Zengo, self-custody wallet, MPC wallet infrastructure, keyless custody, prediction markets, perpetuals, yield.
Bullish
This is a custody-technology step by a regulated retail broker: eToro buys Zengo to control “keyless” MPC self-custody infrastructure and aims to route a large user base into prediction markets, perpetuals, and yield-style products. That can increase demand expectations for the major coins that are typically onboarded first by such platforms (notably BTC and ETH, and in eToro’s case also BCH), improving near-term sentiment. The mostly-cash $70M price tag and the plan to integrate the stack gradually suggest a manageable execution risk, not an immediate market disruption. Overall, the likely effect is a positive sentiment tailwind for BTC/ETH/BCH rather than a direct fundamental change, supporting a bullish-to-mildly-positive read.