eToro is
acquiring Israeli self-custodial wallet maker Zengo, the Nasdaq-listed broker
said todat (Wednesday), in a deal that gives it a finished non-custodial product to
anchor a digital asset push the company has explicitly tied to prediction
markets and decentralized trading models.
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The press
release named tokenized assets and “emerging decentralized trading models
such as prediction markets and perpetuals” as part of what the wallet
acquisition would help support, language that reflects a strategy eToro has been building out in public since the
start of the year.
The company
launched its own non-custodial wallet earlier in 2026 with prediction markets
included, and CEO
Yoni Assia told Finance Magnates in March that the offering was running on
Polymarket integration with talks under way with Kalshi.
Financial
terms of the agreement were not disclosed. The transaction is subject to
customary closing conditions.
eToro
Targets On-Chain Finance with Acquisition
The
acquisition follows a period of operational growth for eToro. As of February, total
trades rose to 70.2 million year-on-year, assets under administration
reached $17.6 billion, and funded accounts grew to 3.9 million, though the
average investment per trade fell to $180.
The company has also continued to
expand its crypto footprint, most recently extending
services to New York and reaching a total of 48 U.S. states
The transaction will combine eToro’s multi-asset trading platform and
global distribution network with Zengo’s non-custodial wallet technology. Zengo
is known for its use of multi-party computation cryptography and a keyless
wallet system designed to improve security and simplify self-custody.
According to eToro, the combined offering will support emerging areas
such as tokenized assets and decentralized trading models, including prediction
markets and perpetual contracts, as these segments continue to evolve.
Yoni Assia, Co-founder and CEO of eToro, said the firm expects structural
changes in how financial services are delivered. He stated, “We believe the
future of finance will be increasingly digital, decentralized and
user-controlled.”
He added that “self-custody is an important part of that
evolution,” and said Zengo has built “an innovative and secure wallet
experience.”
Brokers and Crypto Natives
Are Converging on the Same Opportunity
The
competitive context for the deal is a prediction markets segment that has gone
from niche to one of the fastest-growing revenue lines in retail trading. Robinhood’s prediction markets unit
has crossed 9 billion contracts traded since launch and is on track for an estimated
$300 million annual revenue run rate, according to Bernstein analyst figures
cited by the broker.
Robinhood
and partner Susquehanna International Group completed their 90% acquisition of
derivatives platform MIAXdx in January, giving the broker its own venue to list
event contracts directly rather than rely solely on its Kalshi distribution
deal.
Kalshi has
overtaken Polymarket as the largest US-regulated prediction market venue, capturing roughly 62% of weekly
volume in mid-September with more than $500 million in weekly trading. Crypto.com has launched
Fanatics Markets, a sports prediction platform built with the merchandising
group, while Webull has rolled out hourly bitcoin event contracts in
partnership with Kalshi.
Wallet
providers are arriving from the other direction. Trust Wallet has integrated
prediction market access alongside MetaMask, and Kalshi’s head of crypto, John
Wang, said in October the company plans to
integrate its platform into every major crypto exchange and application within
12 months,
describing event contracts as a Trojan Horse for crypto adoption.
Zengo
Offers Full-Service Crypto Wallet Tools
Zengo provides a range of crypto services, including fiat on- and
off-ramps, token swaps, staking, and access to decentralized applications. The
company positions itself as a full-service self-custodial solution for retail
users.
Ouriel Ohayon, Co-founder and CEO of Zengo, said the company has focused
on simplifying self-custody since its launch. He stated, “From day one, Zengo
has focused on making self-custody simple and secure for everyday users.” He
added that joining eToro will help “accelerate that mission at a global scale.”
The companies said there will be no immediate changes for existing eToro
users. However, they plan to integrate Zengo’s technology into the platform
over time. This is expected to provide users with access to a broader range of
decentralized finance products, including yield-generating services and
advanced trading models.
This article was written by Damian Chmiel, Tareq Sikder at www.financemagnates.com.
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