eToro Acquires Zengo for $70M Amid Prediction Markets Focus
eToro announced on April 15, 2026, an agreement to acquire Zengo, a self-custodial crypto wallet provider, in a deal valued at approximately $70 million.[1][4][5] The move expands eToro’s digital asset capabilities, with explicit mentions of support for emerging decentralized trading models including prediction markets.[4][5][6] No sources confirm a $1T target for prediction markets by 2030; projections remain absent from verified announcements.
Overview
- eToro acquisition of Zengo valued at ~$70M, integrating non-custodial wallet tech into multi-asset platform for self-custody.[1][3][4]
- Zengo founded 2018, serves over 2M users globally with token swaps, staking, fiat ramps, and MPC-based keyless security.[1][4]
- Deal targets tokenized assets and decentralized models like prediction markets and perpetuals as they develop.[2][4][5]
- eToro CEO Yoni Assia: “Crypto downtimes are the time to build,” amid Q1 2026 commodities trading at 60% of commissions, up 4x YoY.[2][6]
- Zengo raised $20M Series A in 2021 from Insight Partners, MoonPay Ventures, Tether.[2]
- Transaction subject to closing conditions; terms not officially disclosed by eToro.[3]
Subscribe to our Social Media for Exclusive Crypto News and Insights 24/7!
eToro-Zengo Deal Details
eToro’s official statement positions the acquisition as a step to connect traditional finance with on-chain infrastructure.[4][6] Zengo’s MPC technology splits keys across locations, avoiding seed phrases for enhanced security.[1] The wallet will operate separately from eToro’s regulated services, enabling direct user interaction with protocols.[3]
Ouriel Ohayon, Zengo CEO, stated the partnership advances custody standards as crypto and TradFi interconnect.[5] Bloomberg sources peg the price at $70M, though eToro confirms no disclosure of terms.[3] Deal announced via GlobeNewswire from New York on April 15, 2026.[6][7]
This builds on eToro’s diversified model. Q1 2026 saw commodities drive 60% of trading commissions, with volumes nearly 4x higher year-over-year due to macro shifts and 24/7 gold/oil trading.[2][6]
Zengo’s Wallet Technology and User Base
Zengo offers a full-service experience: on/off-ramps, swaps, staking, dApp access.[1][4] Its 2 million users highlight adoption of keyless, MPC-based self-custody.[1] Post-acquisition, eToro gains distribution to push these features globally.[2][4]
Self-custody demand rose after exchange failures, aligning with tokenized real-world assets (RWAs) needing robust infrastructure.[1] eToro plans to support such uses alongside decentralized models.[5]
Prediction Markets in eToro’s Strategy
eToro statements repeatedly cite prediction markets as a target use case alongside perpetuals and tokenized assets.[2][4][5][6][7] The acquisition “strengthens eToro’s ability to support evolving digital asset use cases, including… emerging decentralized trading models such as prediction markets and perpetuals.”[4] No quantitative data on prediction markets volume or growth ties directly to this deal across sources.
| Aspect | eToro Pre-Acquisition | Post-Zengo Integration (Planned) |
|---|---|---|
| Custody Model | Custodial trading platform | Adds non-custodial MPC wallet[1][4] |
| Supported Use Cases | Multi-asset, commodities (60% Q1 commissions)[2] | Tokenized assets, prediction markets, perpetuals[4][5] |
| User Control | Platform-managed | Direct private key control via MPC[1][3] |
| Deal Value | N/A | ~$70M[1][3][5] |
Yoni Assia emphasized user-controlled, decentralized finance as the future.[4] Yet sources note no specific prediction markets metrics or timelines.
eToro’s Broader Business Context
Commodities trading surged in Q1 2026, comprising 60% of commissions and 4x YoY volume growth.[2][6] This offsets crypto focus during “downtimes.”[2] eToro operates as a top multi-asset platform with 24/7 features.[6]
No on-chain data from Glassnode, Arkham, Nansen, or Santiment appears in sources for prediction markets or Zengo flows. Exchange flows, holder behavior, or supply distribution remain unverified here.
| Metric | Q1 2026 eToro Data | YoY Change |
|---|---|---|
| Commodities Commissions Share | 60%[2][6] | N/A |
| Commodities Trading Volume | Strong activity[2] | Nearly 4x higher[2][6] |
| Crypto Focus | Expansion via Zengo | Targets DeFi, prediction markets[4] |
| Overall Model | Diversified multi-asset | Self-custody addition[1] |
Long-term (12-36 months), the deal could position eToro for on-chain growth if prediction markets mature, per stated strategy.[4][5] Baseline assumes steady commodities strength; upside ties to DeFi adoption.
Strategic Fit for Tokenized Assets and DeFi
Integration aims to bridge TradFi with crypto-native economy.[4][6] Zengo’s tools support staking, swaps, dApps-key for DeFi participation.[1] Tokenized securities require secure self-custody, a gap this fills.[1]
eToro’s global reach combines with Zengo’s tech for broader access.[2] Sources agree on focus areas but lack user growth projections post-deal.
Risks and Uncertainties
Questions surround Zengo’s $70M valuation if user growth stalls or competitors integrate better solutions.[1] Market downturns or sentiment shifts could impact ROI.[1] Deal remains subject to closing conditions, with no firm timeline.[3]
No sources provide conflicting data on valuation-Bloomberg estimate consistent at ~$70M[1][3][5]-but eToro withholds official terms.[3] Prediction markets mentions are aspirational; no volume, TVL, or adoption metrics confirmed.[4] Long-term projections absent; baseline sees infrastructure build, upside needs market maturation.
Downside scenario: Slow DeFi recovery delays value from self-custody features. Uncertainty factor: Regulatory changes affecting tokenized assets or prediction markets.
Funding and Backers Comparison
Zengo’s prior funding provides context.
| Round | Year | Amount | Key Backers |
|---|---|---|---|
| Series A | 2021 | $20M[2] | Insight Partners, MoonPay Ventures, Tether[2] |
| eToro Acquisition | 2026 | ~$70M[1][5] | N/A (strategic buy)[4] |
This scales Zengo from VC-backed startup to platform-integrated wallet.[2]
Long-term view (24-36 months): If commodities sustain 4x momentum and crypto rebounds, diversified revenue supports crypto bets.[2][6] Prediction markets integration depends on decentralized model development.
Self-custody expansion equips eToro for user-driven digital assets, with commodities at 60% of Q1 2026 commissions anchoring near-term stability.[2][6]
- https://www.whalesbook.com/news/English/tech/eToro-Buys-Crypto-Wallet-Zengo-for-dollar70M-Targeting-DeFi-and-Tokenized-Assets/69df60f1498f7e9bcb006772
- https://fxnewsgroup.com/forex-news/retail-forex/etoro-grows-crypto-capabilities-with-zengo-acquisition/
- https://www.youtube.com/watch?v=sbBRo7uhKmg
- https://www.etoro.com/news-and-analysis/etoro-updates/etoro-expands-self-custodial-crypto-capabilities-with-zengo-acquisition/
- https://cryptobriefing.com/etoro-acquires-zengo-deepens-digital-strategy/
- https://www.marketscreener.com/news/etoro-acquires-zengo-to-expand-self-custodial-crypto-capabilities-ce7e50dcd880f226
- https://www.benzinga.com/pressreleases/26/04/g51823489/etoro-acquires-zengo-to-expand-self-custodial-crypto-capabilities
