eToro has agreed to acquire crypto wallet provider Zengo for $70 million, a move aimed at expanding the brokerage’s digital asset strategy with self-custody and decentralized finance capabilities.
Deal overview
The acquisition brings Zengo’s self-custodial wallet technology under eToro’s umbrella, positioning the multi-asset brokerage to offer users greater control over their digital assets alongside its existing brokerage and trading services. Financial terms disclosed include a $70 million purchase price. Integration plans and a closing timeline were not immediately announced.
Why it matters
Adding a self-custody option would mark a strategic shift for eToro, which has traditionally focused on a custodial, broker-led model. Incorporating Zengo’s technology could enable features such as on-chain asset management, direct access to decentralized applications (dApps), staking, and other Web3 services, while potentially improving security and user autonomy.
About Zengo and eToro
- Zengo is a self-custodial crypto wallet known for its use of multi-party computation (MPC) in place of traditional seed phrases. It offers features such as multi-factor security and Web3 connectivity designed to reduce key-management risks.
- eToro is a global multi-asset brokerage and social investing platform that provides trading and investing in cryptocurrencies, stocks, commodities, and other assets. The company has expanded its crypto offerings in recent years as part of a broader digital asset strategy.
Market impact
If fully integrated, Zengo’s technology could allow eToro customers to move more seamlessly between centralized brokerage services and on-chain activities. The combination underscores continued consolidation in the crypto sector as established platforms seek to enhance security, broaden product suites, and meet growing demand for user-controlled asset management.