TL;DR:
- eToro agreed to acquire Zengo, a self-custody wallet provider, in a deal valued at approximately $70 million.
- Zengo adds multi-party computation technology to the platform, eliminating seed phrases and offering access to decentralized applications.
- eToro debuted on Nasdaq, reported a strong Q4, and was authorized to offer crypto trading in New York with a BitLicense.
eToro announced an agreement to acquire Zengo, an Israeli self-custody wallet startup, in a deal valued at around $70 million, a figure provided to Bloomberg by a source close to the agreement who was not authorized to speak publicly. The trading platform did not disclose the official terms, but noted that Zengo’s incorporation will expand its digital asset infrastructure and connect its brokerage service to the onchain ecosystem.
Zengo was founded in 2018 and built its product on multi-party computation (MPC), a cryptographic architecture that eliminates the need for seed phrases. The wallet offers token swaps, staking, and access to decentralized applications. Since its launch, the company has not recorded a single hack and has accumulated more than 2 million users worldwide.
Yoni Assia, CEO of eToro, argued that self-custody will play a central role in a more decentralized financial system, and framed the deal as a long-term bet rather than a move aimed at immediate trading. Ouriel Ohayon, CEO of Zengo, noted that the integration will allow the wallet to scale globally while connecting its self-custody tools to a large-scale investment ecosystem.
eToro Consolidates its Expansion in the Crypto Market
eToro is going through a successful growth cycle. The company debuted on Nasdaq last year with positive results, then reported a surge in profitability during the fourth quarter, driven in part by gains from cryptocurrency derivatives trading. More recently, it began offering cryptocurrency trading in New York after obtaining a BitLicense, breaking into one of the most relevant markets in the United States.
Zengo, for its part, has incorporated in recent years a hereditary-type digital asset recovery system and acquired Minke, a stablecoin-focused wallet. The company had raised $20 million in a Series A round in 2021 and subsequently sought additional funding at a valuation of $100 million. The deal is subject to customary closing conditions.
