eToro has agreed to acquire the crypto wallet provider Zengo in a deal estimated to be worth approximately $70 million, according to coindesk.com.
The acquisition allows the multi-asset investing platform to integrate advanced self-custody tools into its existing ecosystem. This move targets the growing demand for decentralized trading models and tokenized assets.
Zengo utilizes multi-party computation, or MPC, to secure user funds. This technology removes the need for a seed phrase, which reduces common risks associated with lost or stolen private keys.
By merging eToro’s network with Zengo’s non-custodial technology, the company aims to support emerging use cases like prediction platforms and perpetual futures. The wallet will operate independently from eToro’s regulated services, allowing users to interact directly with third-party protocols.
Expanding into decentralized finance
eToro co-founder and CEO 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,” Assia said, according to the report.
Zengo, which launched in 2018, currently serves over 2 million users globally. The wallet provides several features including staking, token swaps, and fiat onramps.
While an eToro spokesperson told CoinDesk that the specific terms of the deal were not being disclosed, Bloomberg reported the valuation at around $70 million. The acquisition remains subject to standard closing conditions.
