In a major strategic move within the cryptocurrency custody sector, the mobile investment platform eToro has officially acquired digital wallet provider Zengo for $70 million. The transaction, confirmed on March 15, 2025, is set to reshape the competitive landscape for decentralized finance (DeFi) accessibility and secure asset storage by bridging traditional investment interfaces with advanced self-custody solutions.
The $70 million deal, mostly in cash according to reports, will see eToro integrate Zengo's non-custodial wallet technology directly into its existing platform. This integration will grant eToro users direct control over their private keys while maintaining access to the platform's social trading and investment features. The acquisition includes Zengo's entire technology stack and development team to ensure a seamless merger.
eToro CEO Yoni Assia, speaking at Paris Blockchain Week, stated the acquisition aligns with the company's effort to attract a more crypto-native user base and expand beyond regulated brokerage products into self-custody infrastructure. "Crypto activities have become an important revenue source for the platform," he noted, highlighting that eToro reported total revenue and income of $13.8 billion in 2025, with $12.98 billion coming from crypto assets.
The strategic rationale centers on Zengo's patented keyless security model, which eliminates vulnerable seed phrases—a critical pain point for mainstream adoption. This technology, combined with eToro's regulatory compliance framework, aims to create a powerful hybrid model. The integration roadmap is phased over 12-18 months, initially maintaining Zengo as a standalone app while backend systems merge, eventually launching a unified platform.
During the same event, Assia made a bold prediction for Bitcoin's future, stating, "Bitcoin is on the path eventually to $250,000, $500,000 and beyond." He anticipates the current market slowdown will last another quarter before Bitcoin enters a new accumulation phase. This target aligns with forecasts from other industry figures like BitMEX co-founder Arthur Hayes and author Robert Kiyosaki.
The acquisition significantly alters the competitive dynamics in the crypto wallet and investment platform sectors, positioning eToro more strongly against rivals like Coinbase and Binance. Analysts project the move could increase eToro's addressable market by approximately 30% within two years, particularly among investors seeking greater asset control and direct DeFi access.
