How eToro’s Zengo Deal Reshapes the Competitive Landscape for Money Transfer and Trading Platforms

eToro has entered into an agreement to acquire Zengo, a self‑custodial crypto wallet provider, in a deal valued at around $70 million, according to multiple reports and company statements. Zengo, founded in 2018, is known for its keyless, multi‑party computation (MPC) wallet architecture, which removes traditional seed phrases while maintaining user self‑custody. The acquisition is positioned by eToro as a way to deepen its digital asset capabilities, connect its regulated multi‑asset brokerage with on‑chain infrastructure, and expand support for emerging use cases such as tokenized assets, prediction markets, perpetuals and other decentralized trading models.

Zengo will continue to operate as a self‑custodial wallet under the eToro umbrella, offering on‑ and off‑ramp services, token swaps, staking, and access to decentralized applications to its more than 2 million users. eToro’s leadership has framed self‑custody as a central pillar in the future of digital finance, emphasizing that users should have more control over how they access and hold digital assets. By integrating Zengo’s MPC wallet technology, eToro gains the ability to offer customers both traditional, regulated brokerage services and direct, non‑custodial interaction with on‑chain assets within a single ecosystem.

For remittance and money transfer companies, this move underscores a broader shift toward platforms that combine regulated fiat on‑ramps with self‑custodial crypto infrastructure. Zengo already supports fiat on‑ and off‑ramp capabilities, which can be used to move value between traditional banking systems and on‑chain assets. When paired with eToro’s global distribution and multi‑asset trading platform, this creates a vertically integrated stack that can support cross‑border value transfer, tokenized assets, and on‑chain settlement without requiring users to rely solely on custodial intermediaries. Competitors in remittances and money transfer—especially those still dependent on purely custodial models or limited crypto support—may face pressure to add self‑custody options, deeper on‑chain connectivity, or more flexible asset rails to remain competitive.

For trading platforms and brokerages, the acquisition highlights a strategic direction where traditional trading interfaces are increasingly linked to non‑custodial wallets and decentralized products. eToro has explicitly stated that Zengo’s technology will help it support decentralized trading models, including prediction markets and perpetuals, as those markets mature.

This means eToro can serve both users who prefer a regulated, broker‑style experience and those who want direct, on‑chain interaction and self‑custody, within one brand. Competing trading platforms that do not yet offer integrated self‑custody or on‑chain access may need to consider partnerships, acquisitions or in‑house wallet development to match this combined offering.

From a competitive standpoint, the deal effectively blurs the line between “brokerage,” “wallet,” and “on‑chain gateway.” eToro gains a differentiated position: a large, regulated multi‑asset platform with a built‑in, battle‑tested self‑custodial wallet that has reported no wallet hacks since launch. For remittance, money transfer, and trading companies, the fact pattern is clear: user expectations are moving toward more control, more direct on‑chain access, and more integrated experiences. eToro’s acquisition of Zengo is a concrete step in that direction and may serve as a reference point for how other firms structure their own strategies around custody, on‑chain access, and cross‑border value movement.