Key Highlights
- Trading platform eToro has reached an agreement to purchase Zengo crypto wallet for approximately $70 million
- Zengo employs multi-party computation (MPC) security, eliminating seed phrase requirements
- The acquisition is designed to expand eToro’s self-custody capabilities and decentralized trading features
- ETOR shares have declined more than 1% in 2025 and approximately 48% during the trailing 12-month period
- A Citizens analyst lowered the price target to $85 while maintaining approximately 145% potential upside
On Wednesday, trading platform eToro (ETOR) revealed it has entered into an agreement to purchase cryptocurrency wallet provider Zengo in a transaction valued at approximately $70 million, according to reports. Shares experienced a modest uptick following the announcement.
JUST IN: eToro is acquiring Zengo to expand its crypto self-custody capabilities. pic.twitter.com/kGdUzKBM7Y
— SwanDesk (@SwanDesk) April 15, 2026
Established in 2018, Zengo has accumulated over 2 million users worldwide. The platform provides a non-custodial wallet solution, giving users direct control over their digital assets without intermediary involvement.
Zengo’s technology leverages multi-party computation (MPC) for security purposes, eliminating the need for traditional seed phrases. This architectural approach aims to minimize risks associated with lost or compromised recovery keys—a frequent challenge in self-custody cryptocurrency management.
The transaction encompasses Zengo’s existing functionality, including token exchanges, staking services, and fiat currency on-ramps. The wallet will operate independently from eToro’s regulated offerings, enabling users to engage directly with decentralized protocols.
eToro’s CEO and co-founder Yoni Assia emphasized the strategic timing of the move. “As we often say, crypto downtimes are the time to build and this acquisition reflects that long-term approach,” he commented.
According to the company, the purchase will enhance its capacity to accommodate emerging cryptocurrency applications—particularly tokenized assets, prediction markets, and perpetual futures contracts. eToro intends to incorporate Zengo’s infrastructure into its existing platform over time.
“[The acquisition] will strengthen our ability to support evolving digital asset use cases, including tokenized assets and emerging decentralized trading models,” the company stated.
The announcement followed eToro’s Tuesday launch of a proprietary app marketplace, providing a platform for investors and developers to create and utilize trading and analytical tools within its ecosystem. ETOR shares climbed more than 4% after that reveal.
ETOR Stock Performance Under Pressure
Notwithstanding recent corporate developments, the stock has experienced significant headwinds. ETOR shares have fallen over 1% since the start of 2025 and roughly 48% during the past 12 months.
Recently, Devin Ryan, an analyst at Citizens, reduced his price objective on ETOR to $85 from a higher previous level, though this still represents approximately 145% potential appreciation from current trading levels. Ryan noted that “navigating volatility remains the central challenge” facing capital markets and fintech firms, adding that cryptocurrency sentiment “remains impaired” near-term.
This pressure was evident in eToro’s fourth-quarter financial performance. Digital asset revenue contracted 38% during the quarter concluded December 31. Nevertheless, the firm reported quarterly earnings of $69 million, representing a roughly 16% increase year-over-year.
Analyst Sentiment
Among Wall Street analysts, ETOR carries a Moderate Buy consensus rating, derived from seven Buy recommendations and three Hold ratings issued within the last three months.
The consensus price objective stands at $52.80, suggesting approximately 52% upside potential from present price levels.
The Zengo transaction remains contingent upon customary closing requirements. While eToro has not publicly verified the $70 million valuation, Bloomberg reported the figure based on a source familiar with the transaction.
