Key Highlights
- eToro confirms acquisition of Zengo wallet provider in a transaction worth approximately $70 million.
- The deal integrates Zengo’s non-custodial wallet infrastructure into eToro’s existing platform.
- Zengo employs multi-party computation technology and eliminates traditional seed phrase requirements.
- The platform enables token exchanges, staking services, and decentralized application connectivity.
- Zengo reports over 2 million registered users with zero security breaches since its inception.
Investment platform eToro has finalized an agreement to purchase Zengo for roughly $70 million, Bloomberg has disclosed. This strategic move brings [[LINK_START_0]]non-custodial[[LINK_END_0]] wallet capabilities into eToro’s digital currency offerings. Both organizations anticipate finalizing the agreement once standard regulatory requirements are satisfied.
Strategic Integration Strengthens eToro’s Blockchain Capabilities
The brokerage platform will incorporate Zengo’s advanced multi-party computation wallet system into its existing infrastructure. eToro representatives indicate this integration bridges traditional trading operations with blockchain-based services. A source with direct knowledge of the negotiations confirmed the $70 million figure to Bloomberg.
Since its launch in 2018, Zengo has developed wallet technology that operates without conventional seed phrases. The platform leverages multi-party computation cryptographic methods to protect user private keys. Users can execute token swaps, participate in staking protocols, and interact with decentralized applications through the interface.
The wallet service has accumulated over 2 million registered accounts across global markets. According to company statements, Zengo maintains an unblemished security record with no successful hacking incidents reported. eToro intends to deploy this infrastructure to provide direct self-custody options to its customer base.
Yoni Assia, eToro’s chief executive, emphasized that self-custody represents a foundational element of decentralized finance architecture. He characterized the purchase as a strategic investment with long-term objectives. Assia noted the company’s goal is to create seamless connections between investment products and underlying blockchain technology.
Expanded Market Access Through Strategic Partnership
Ouriel Ohayon, Zengo’s chief executive, highlighted how the acquisition creates opportunities for international expansion. He described the combination as connecting self-custody infrastructure with comprehensive investment platforms. Ohayon confirmed both development teams will collaborate to accelerate product deployment.
Zengo has progressively enhanced its feature set over recent operating periods. The development team implemented an inheritance-focused recovery mechanism for digital holdings. The company also completed an acquisition of Minke, a stablecoin-focused wallet, to broaden its service portfolio.
This transaction unfolds during an expansion phase for eToro. The platform completed its Nasdaq listing last year with robust market reception. Subsequent quarterly reports showed improved profitability in the fourth quarter, driven by cryptocurrency derivatives trading volume.
eToro recently launched cryptocurrency trading services in New York following BitLicense approval. This regulatory clearance provided entry to a strategically important U.S. jurisdiction. The platform maintains its expansion trajectory across both conventional trading and digital asset categories.
Zengo secured $20 million through a Series A financing round in 2021. The company subsequently pursued additional capital at a $100 million valuation target. The current acquisition agreement remains pending completion of standard closing requirements.
