eToro to buy TradeZero as crypto revenue slides 30% in Q2
Ecosystem ·
eToro has agreed to acquire US brokerage TradeZero, a deal reportedly valued at up to $231 million, as the trading platform reported a 30% drop in cryptoasset revenue for the second quarter.
The acquisition gives eToro a foothold in the US brokerage market through TradeZero's existing infrastructure, a common route for firms seeking faster access to regulated trading rails rather than building licensing and compliance from scratch, according to eToro's investor filing. The move comes as eToro's own results show a split performance: while crypto revenue fell 30% in the quarter, equities trading activity drove overall growth, offsetting the crypto-side decline, per The Block's reporting.
The deal fits a broader pattern in crypto and fintech dealmaking, where companies increasingly buy market access, licenses, or technology rather than build them internally. Acquiring a licensed brokerage such as TradeZero can shortcut years of regulatory approval that would otherwise be required to operate directly in the US market, a dynamic also seen in other recent crypto-sector purchases of regulated entities, as outlined in Leviathan's acquisition explainer.
The TradeZero purchase follows eToro's earlier move into self-custody, when the company acquired keyless wallet startup Zengo for $70 million, extending wallet capability to its user base. Taken together, the two deals point to a platform diversifying beyond pure crypto trading at a moment when that segment's revenue is contracting, even as its equities business expands.
What remains unclear is how the TradeZero acquisition will be structured beyond the reported valuation range, and how quickly eToro intends to integrate the brokerage's US operations with its existing platform. Also unresolved is whether the 30% crypto revenue decline reflects a broader industry-wide pullback or factors specific to eToro's user base, a question likely to be addressed as further quarterly detail becomes available.