Key Takeaways
- eToro finalized a deal to purchase crypto wallet company Zengo for approximately $70 million
- Zengo’s platform leverages multi-party computation (MPC) technology, eliminating traditional seed phrase requirements
- The acquisition is designed to enhance self-custody capabilities and decentralized trading functionality on eToro
- ETOR shares have declined more than 1% in 2025 and approximately 48% over the trailing twelve months
- Analyst Devin Ryan from Citizens reduced his target price to $85 while maintaining a positive outlook with ~145% potential upside
On Wednesday, eToro (ETOR) revealed it has entered into an agreement to purchase cryptocurrency wallet provider Zengo in a transaction valued at roughly $70 million, according to industry reports. Shares experienced modest gains following the announcement.
Established in 2018, Zengo has accumulated over 2 million users worldwide. The platform operates as a non-custodial wallet solution, enabling users to maintain direct control over their digital assets without intermediary involvement.
Zengo’s infrastructure utilizes multi-party computation (MPC) technology to safeguard user funds without requiring a traditional seed phrase. This architectural approach aims to mitigate risks associated with lost or compromised private keys — a persistent challenge within the self-custody cryptocurrency ecosystem.
The transaction brings along capabilities including token swaps, staking services, and fiat on-ramp options that Zengo currently provides. The wallet platform will continue operating independently from eToro’s regulated offerings, allowing users to engage directly with external decentralized protocols.
eToro’s CEO and co-founder Yoni Assia 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 acquisition will enable support for emerging cryptocurrency applications — particularly tokenized real-world assets, prediction markets, and perpetual futures contracts. eToro intends to embed Zengo’s 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 confirmed in an official statement.
The announcement arrived one day after eToro unveiled its proprietary app marketplace, creating an ecosystem where investors and third-party developers can create and utilize trading tools and analytics applications natively within the platform. ETOR shares surged more than 4% following that product launch.
ETOR Stock Struggles Through Challenging Period
Notwithstanding recent corporate developments, the stock has experienced significant headwinds. ETOR has slipped over 1% since the beginning of the year and has tumbled roughly 48% during the past twelve months.
Last week, Devin Ryan, an analyst at Citizens, lowered his price objective on ETOR to $85 from a higher previous level, though this still represents approximately 145% potential appreciation from current trading levels. Ryan noted that “navigating volatility remains the central challenge” facing capital markets and fintech firms, adding that cryptocurrency sentiment “remains impaired” in the near term.
This pressure materialized in eToro’s fourth-quarter financial performance. Revenue from digital assets dropped 38% during the quarter concluded December 31. Nevertheless, the firm reported quarterly earnings of $69 million, representing a year-over-year increase of roughly 16%.
Analyst Sentiment on ETOR
Among Wall Street analysts, the consensus rating on ETOR stands at Moderate Buy, derived from seven Buy recommendations and three Hold ratings issued within the last three months.
The mean price target among analysts reaches $52.80, suggesting approximately 52% upside potential from present price levels.
The Zengo transaction remains contingent upon satisfying customary closing requirements. While eToro hasn’t publicly verified the $70 million valuation, Bloomberg reported the figure based on information from a source familiar with the agreement.
