eToro is acquiring Israeli self-custodial wallet maker Zengo, the Nasdaq-listed broker said today (Wednesday), in a deal that gives it a finished non-custodial product to anchor a digital asset push the company has explicitly tied to prediction markets and decentralized trading models.

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The press release named tokenized assets and "emerging decentralized trading models such as prediction markets and perpetuals" as part of what the wallet acquisition would help support, language that reflects a strategy eToro has been building out in public since the start of the year.

The company launched its own non-custodial wallet earlier in 2026 with prediction markets included, and CEO Yoni Assia told Finance Magnates in March that the offering was running on Polymarket integration with talks under way with Kalshi.

Financial terms of the agreement were not disclosed. The transaction is subject to customary closing conditions.

eToro Targets On-Chain Finance with Acquisition

The acquisition follows a period of operational growth for eToro. As of February, total trades rose to 70.2 million year-on-year, assets under administration reached $17.6 billion, and funded accounts grew to 3.9 million, though the average investment per trade fell to $180.

The company has also continued to expand its crypto footprint, most recently extending services to New York and reaching a total of 48 U.S. states

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The transaction will combine eToro’s multi-asset trading platform and global distribution network with Zengo’s non-custodial wallet technology. Zengo is known for its use of multi-party computation cryptography and a keyless wallet system designed to improve security and simplify self-custody.

According to eToro, the combined offering will support emerging areas such as tokenized assets and decentralized trading models, including prediction markets and perpetual contracts, as these segments continue to evolve.

Yoni Assia, Co-founder and CEO of eToro, said the firm expects structural changes in how financial services are delivered. He stated, “We believe the future of finance will be increasingly digital, decentralized and user-controlled.”

He added that “self-custody is an important part of that evolution,” and said Zengo has built “an innovative and secure wallet experience.”

Brokers and Crypto Natives Are Converging on the Same Opportunity

The competitive context for the deal is a prediction markets segment that has gone from niche to one of the fastest-growing revenue lines in retail trading . Robinhood's prediction markets unit has crossed 9 billion contracts traded since launch and is on track for an estimated $300 million annual revenue run rate, according to Bernstein analyst figures cited by the broker.

Robinhood and partner Susquehanna International Group completed their 90% acquisition of derivatives platform MIAXdx in January, giving the broker its own venue to list event contracts directly rather than rely solely on its Kalshi distribution deal.

Kalshi has overtaken Polymarket as the largest US-regulated prediction market venue, capturing roughly 62% of weekly volume in mid-September with more than $500 million in weekly trading. Crypto.com has launched Fanatics Markets, a sports prediction platform built with the merchandising group, while Webull has rolled out hourly bitcoin event contracts in partnership with Kalshi.

Wallet providers are arriving from the other direction. Trust Wallet has integrated prediction market access alongside MetaMask, and Kalshi's head of crypto, John Wang, said in October the company plans to integrate its platform into every major crypto exchange and application within 12 months, describing event contracts as a Trojan Horse for crypto adoption.

Zengo Offers Full-Service Crypto Wallet Tools

Zengo provides a range of crypto services, including fiat on- and off-ramps, token swaps, staking, and access to decentralized applications. The company positions itself as a full-service self-custodial solution for retail users.

Ouriel Ohayon, Co-founder and CEO of Zengo, said the company has focused on simplifying self-custody since its launch. He stated, “From day one, Zengo has focused on making self-custody simple and secure for everyday users.” He added that joining eToro will help “accelerate that mission at a global scale.”

The companies said there will be no immediate changes for existing eToro users. However, they plan to integrate Zengo’s technology into the platform over time. This is expected to provide users with access to a broader range of decentralized finance products, including yield-generating services and advanced trading models.