Key Highlights
- eToro finalizes acquisition of Zengo wallet provider for approximately $70 million.
- Deal brings Zengo’s non-custodial wallet infrastructure to eToro’s brokerage services.
- Zengo employs multi-party computation cryptography, eliminating seed phrase requirements.
- Platform enables token exchanges, staking activities, and decentralized application connectivity.
- Zengo boasts over 2 million users with zero security breaches since its inception.
eToro has finalized an acquisition agreement for Zengo valued at approximately $70 million, Bloomberg reports. The transaction brings [[LINK_START_0]]non-custodial[[LINK_END_0]] wallet infrastructure to eToro’s comprehensive digital asset ecosystem. Both organizations anticipate completing the deal following standard regulatory approvals.
Digital Brokerage Enhances Platform with Wallet Technology
eToro plans to incorporate Zengo’s multi-party computation wallet directly into its trading infrastructure. Company leadership described the strategic move as bridging traditional brokerage services with blockchain-native infrastructure. Bloomberg confirmed the $70 million purchase price through sources with direct knowledge of the agreement.
Zengo launched its platform in 2018 with a distinctive approach to wallet security. The technology relies on multi-party computation cryptography rather than traditional seed phrases for private key protection. Users can execute token exchanges, participate in staking programs, and interact with decentralized applications through the interface.
The wallet provider reports accumulating more than 2 million active users across global markets. Zengo maintains it has experienced zero successful security breaches throughout its operational history. eToro intends to deploy this technology to provide direct self-custody options for its client base.
Yoni Assia, CEO of eToro, emphasized that self-custody represents a foundational element for decentralized finance. He characterized the acquisition as a strategic long-term investment. The executive stated the firm seeks to bridge conventional investing platforms with decentralized blockchain systems.
Wallet Provider Gains Global Distribution Through Partnership
Ouriel Ohayon, CEO of Zengo, indicated the combination will accelerate international expansion. He described the collaboration as connecting self-custody infrastructure to eToro’s established investment platform. Both leadership teams plan coordinated efforts to scale wallet adoption.
Zengo has continuously enhanced its product offerings over recent years. The platform developed an inheritance-based recovery mechanism for digital holdings. The company also completed an acquisition of Minke, a stablecoin-focused wallet, to broaden its service portfolio.
The deal materializes during a growth phase for eToro. The brokerage completed its public listing on Nasdaq in the previous year with favorable market reception. The company subsequently delivered improved fourth-quarter earnings, driven partly by cryptocurrency derivatives volume.
eToro recently enabled cryptocurrency trading operations in New York following BitLicense approval. The regulatory clearance provided entry into a significant United States jurisdiction. The platform continues expanding its suite of trading and digital asset products.
Zengo secured $20 million through a Series A funding round in 2021. The company subsequently pursued additional capital at a $100 million valuation target. The current acquisition remains contingent on fulfilling standard closing requirements.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
