eToro is buying Zengo, an Israeli self-custodial crypto wallet provider, in a move that takes the Nasdaq-listed broker further into on-chain infrastructure and puts it in step with rivals such as Robinhood and Crypto.com that have spent the past two years buying their way into the digital asset stack.Singapore Summit: Meet the largest APAC brokers you know (and those you still don't!)eToro Agrees to Buy Crypto Wallet Maker ZengoFinancial terms of the agreement were not disclosed. The transaction is subject to customary closing conditions, the company said in a statement today (Wednesday). Zengo, founded in 2018 and backed by Insight Partners and Tether, says it has more than 2 million users across 180 countries, and is built on multi-party computation, or MPC, cryptography that does away with the seed phrase that has historically been the weakest link in self-custodial wallets.eToro framed the deal as a way to support emerging digital asset use cases, including tokenized assets and decentralized trading models such as prediction markets and perpetuals. The company said the wallet would continue to operate as a separate product from its regulated exchange services, with Zengo users interacting directly with third-party protocols when accessing decentralized applications, swaps, and staking.Ouriel Ohayon, Zengo's co-founder and CEO, said in the statement that joining eToro would allow the company to "accelerate that mission at a global scale" and connect self-custody "to a broader investing ecosystem that bridges traditional and on-chain finance."[#highlighted-links#] A Second Acquisition Since the Nasdaq DebutThe Zengo deal is eToro's second announced acquisition since its Nasdaq IPO last May, which valued the company at $4.2 billion and raised $620 million. Co-founder Ronen Assia told Bloomberg in September that eToro was sitting on roughly $988 million in cash without debt and had a "robust M&A pipeline," signaling more deals to come. The company subsequently agreed to buy Australian investing app Spaceship for up to $55 million, targeting the long-term savings segment.CEO Yoni Assia used Wednesday’s announcement to flag what he called diversified trading momentum in early 2026. He said commodity trading accounted for 60% of trading commissions by asset class in the first quarter, with commodities volume running nearly four times higher year over year, a shift the company linked to macroeconomic conditions and its expansion of 24/7 trading on instruments including gold and oil. Assia said in the statement that "we believe the future of finance will be increasingly digital, decentralized and user-controlled, with self-custody playing an important role in that evolution," adding that "crypto downtimes are the time to build."Brokers Are Buying Their Way Into Crypto InfrastructureThe acquisition lands at a moment when retail trading platforms are increasingly looking to control the underlying crypto plumbing rather than simply offer exposure. Robinhood closed its $200 million purchase of crypto exchange Bitstamp in June 2025, giving the US trading app more than 50 active licenses, an institutional crypto business, and an order book it has since used to underpin tokenized stock trading in the European Union. That deal pushed Robinhood for the first time into institutional crypto, a segment historically dominated by specialists such as Coinbase Custody and BitGo.Crypto-native firms have been moving in the opposite direction. Crypto.com partnered with self-custody provider Exodus to act as the wallet maker's digital asset custodian, while Ripple completed its $1.25 billion acquisition of prime broker Hidden Road in 2025 and rebranded the unit as Ripple Prime, layering custody, payments, and its RLUSD stablecoin onto an existing multi-asset brokerage business. Ripple has also filed trademarks suggesting it may launch its own wallet product.Neither side disclosed retention terms, integration timelines, or whether Zengo would remain a standalone brand under eToro ownership. The companies did not indicate when they expect the deal to close. This article was written by Damian Chmiel at www.financemagnates.com.

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