Key Highlights
- Trading platform eToro purchases Zengo, a crypto wallet startup, for approximately $70 million
- Zengo utilizes multi-party computation (MPC) security, eliminating seed phrase requirements
- Acquisition designed to expand self-custody capabilities and decentralized finance features on eToro’s platform
- ETOR shares have declined more than 1% in 2025 and approximately 48% over the previous year
- Wall Street analyst Devin Ryan from Citizens maintains bullish outlook with $85 price target despite near-term headwinds
On Wednesday, trading platform eToro (ETOR) revealed its plans to purchase Zengo, a cryptocurrency wallet provider, in a transaction valued at approximately $70 million according to reports. Shares ticked slightly higher following the announcement.
Launched in 2018, Zengo has accumulated a worldwide customer base exceeding 2 million users. The platform provides a non-custodial wallet solution, enabling users to maintain direct control over their digital assets without intermediary involvement.
Zengo’s infrastructure employs multi-party computation (MPC) technology to protect user funds while eliminating the need for traditional seed phrases. This approach aims to mitigate risks associated with misplaced or compromised private keys — a persistent challenge in the self-custody cryptocurrency space.
The transaction brings along established capabilities including token swapping functionality, staking services, and fiat currency onramps that Zengo currently provides. The wallet platform will operate independently from eToro’s regulated product offerings, allowing users to engage directly with decentralized protocols.
Yoni Assia, CEO and co-founder of eToro, emphasized the strategic timing of the move. “As we often say, crypto downtimes are the time to build and this acquisition reflects that long-term approach,” he stated.
According to the company, this strategic purchase will enable eToro to better accommodate emerging cryptocurrency applications — particularly tokenized real-world assets, prediction market platforms, and perpetual futures contracts. The firm intends to weave Zengo’s underlying technology throughout its existing infrastructure.
“[The acquisition] will strengthen our ability to support evolving digital asset use cases, including tokenized assets and emerging decentralized trading models,” eToro indicated in an official statement.
This acquisition follows closely on the heels of eToro’s app marketplace launch, unveiled just one day earlier. The new marketplace provides a centralized hub where investors and third-party developers can create and utilize trading tools, analytical applications, and other services within eToro’s ecosystem. ETOR[[/LINK_END_3]] shares climbed more than 4% after that announcement.
Challenging Year for ETOR Shares
Notwithstanding these strategic initiatives, the stock has experienced significant headwinds. ETOR has fallen over 1% since the start of 2025 and has shed roughly 48% of its value over the trailing twelve-month period.
Earlier this month, Devin Ryan, an analyst at Citizens, reduced his price objective on ETOR to $85 from a higher previous estimate, though this target still suggests potential upside of approximately 145% from current trading levels. Ryan noted that “navigating volatility remains the central challenge” facing capital markets and financial technology firms, while observing that cryptocurrency market sentiment “remains impaired” in the near term.
These headwinds materialized in eToro’s fourth-quarter financial performance. Revenue from digital assets dropped 38% during the quarter that concluded on December 31. Nevertheless, the company managed to report quarterly earnings of $69 million, representing a year-over-year increase of roughly 16%.
Analyst Community Outlook
Among Wall Street analysts covering the stock, ETOR currently carries a Moderate Buy consensus rating, derived from seven Buy recommendations and three Hold ratings issued during the last three months.
The mean price objective among analysts stands at $52.80, suggesting potential appreciation of approximately 52% from present price levels.
The Zengo transaction remains pending customary closing requirements. While eToro has not publicly verified the $70 million purchase price, Bloomberg reported the figure citing a source familiar with the transaction terms.
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