eToro to Acquire Zengo in $70M Self-Custody Push

TLDR

• eToro has agreed to acquire crypto wallet provider Zengo in a deal valued at about $70 million.
• The acquisition adds Zengo’s non-custodial wallet technology to eToro’s digital asset platform.
• Zengo uses multi-party computation cryptography and removes the need for seed phrases.
• The wallet supports token swaps, staking, and access to decentralized applications.
• Zengo has attracted more than 2 million users and reports no wallet hacks since launch.

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eToro has agreed to acquire Zengo for about $70 million, according to Bloomberg. The deal adds non-custodial wallet technology to eToro’s digital asset platform. The companies expect to close the transaction after customary conditions are met.

eToro Expands Crypto Stack with Zengo Deal

eToro will integrate Zengo’s multi-party computation wallet into its brokerage platform. The company said the move connects trading services with onchain infrastructure. Bloomberg reported a $70 million valuation, citing a person familiar with the matter.

Zengo launched in 2018 and built its wallet without seed phrases. Instead, it uses multi-party computation cryptography to secure private keys. The wallet supports token swaps, staking, and decentralized application access.

Zengo said it has attracted more than 2 million users worldwide. The company added that it has not recorded a wallet hack since launch. eToro plans to use the technology to offer self-custody directly to clients.

Yoni Assia, CEO of eToro, said self-custody will anchor a decentralized financial system. He said the company views the acquisition as a long-term build. He added that the firm aims to link investing tools with blockchain infrastructure.

Zengo Strengthens Product Reach Through eToro Acquisition

Ouriel Ohayon, CEO of Zengo, said the tie-up will expand the wallet globally. He said the partnership connects self-custody tools to a wider investing ecosystem. He added that the teams will work together to scale the product.

Zengo has expanded its wallet features in recent years. The company introduced an inheritance-style recovery system for digital assets. It also acquired stablecoin wallet Minke to widen its product range.

The acquisition comes during a period of growth for eToro. The company went public on Nasdaq last year and reported a strong market debut. It later posted higher fourth-quarter profitability, supported by crypto derivatives trading gains.

eToro also activated crypto trading in New York after securing a BitLicense. The approval opened access to a key United States market. The company continues to add services across trading and digital assets.

Zengo raised $20 million in a Series A round in 2021. The company later sought more funding at a $100 million valuation. The current transaction remains subject to customary closing conditions.

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