TLDR
- eToro agreed to acquire crypto wallet startup Zengo for around $70 million
- Zengo uses multi-party computation (MPC) technology, removing the need for seed phrases
- The deal aims to bring self-custody tools and decentralized trading to eToro’s platform
- ETOR stock is down over 1% year-to-date and roughly 48% over the past 12 months
- Citizens analyst Devin Ryan cut his price target to $85 but still sees ~145% upside
eToro (ETOR) announced Wednesday it has agreed to acquire crypto wallet provider Zengo in a deal reported to be worth around $70 million. The stock edged up marginally on the news.
JUST IN: eToro is acquiring Zengo to expand its crypto self-custody capabilities. pic.twitter.com/kGdUzKBM7Y
— SwanDesk (@SwanDesk) April 15, 2026
Zengo was founded in 2018 and has built up a user base of more than 2 million people globally. It offers a non-custodial wallet, meaning users hold control of their own funds rather than relying on a third party.
The wallet uses multi-party computation, or MPC, to secure funds without a seed phrase. That design is intended to reduce the risk of lost or stolen keys — one of the more common headaches in self-custody crypto.
The deal includes features like token swaps, staking, and fiat onramps that Zengo already offers. Its wallet will stay separate from eToro’s regulated services, letting users interact directly with third-party protocols.
eToro CEO and co-founder Yoni Assia framed the timing deliberately. “As we often say, crypto downtimes are the time to build and this acquisition reflects that long-term approach,” he said.
The company said the acquisition will help it support newer crypto use cases — specifically tokenized assets, prediction markets, and perpetual futures. eToro plans to integrate Zengo’s technology into its platform going forward.
“[The acquisition] will strengthen our ability to support evolving digital asset use cases, including tokenized assets and emerging decentralized trading models,” eToro said in a statement.
The deal came just a day after eToro launched its own app store, giving investors and developers a place to build and access trading and analytics tools directly within its platform. ETOR closed over 4% higher following that announcement.
A Tough 12 Months for ETOR
Despite the flurry of activity, the stock has had a rough run. ETOR is down more than 1% year-to-date and around 48% over the past year.
Last week, Citizens analyst Devin Ryan trimmed his price target on ETOR from a previous level to $85, still implying around 145% upside from where the stock trades now. Ryan flagged that “navigating volatility remains the central challenge” for capital markets and fintech companies, and said crypto sentiment “remains impaired” in the short-term.
That pressure showed up in eToro’s Q4 results. Digital asset revenue fell 38% in the quarter ending December 31. Still, the company posted a quarterly profit of $69 million, up about 16% year-over-year.
What Wall Street Thinks
On Wall Street, the consensus on ETOR is a Moderate Buy, based on seven Buy ratings and three Holds over the past three months.
The average price target sits at $52.80, pointing to roughly 52% upside from current levels.
The Zengo acquisition is still subject to closing conditions. eToro has not officially confirmed the $70 million figure, though Bloomberg cited an insider with knowledge of the deal.
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