eToro Acquires Self-Custodial Crypto Wallet Zengo for $70 Million

eToro has made a significant move in the fintech sector by acquiring Zengo, a self-custodial crypto wallet, for $70 million. The acquisition allows eToro to expand its services beyond its MiCA-regulated exchange, providing users with on-chain exposure without regulatory liability.

The regulated entity, eToro (Europe) Ltd, holds a MiCA licence granted by the Cyprus Securities and Exchange Commission in early 2025, passported across all 27 EU member states and the wider European Economic Area. However, this licence only covers regulated crypto-asset trading and custody. Zengo's wallet sits entirely outside this structure, allowing eToro to participate in the part of crypto that a regulated exchange cannot reach.

The acquisition is a strategic move for eToro, aligning with its goal of providing digital, decentralised, and user-controlled financial services. With Zengo, eToro can offer users access to decentralised applications, token swaps, staking, prediction markets, perpetuals, and more, all while maintaining regulatory compliance.