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eToro Strengthens Its Position in Crypto by Acquiring Zengo for $70 Million

eToro has entered a significant agreement to acquire the self-custodial crypto wallet provider Zengo for approximately $70 million.

This move strategically combines eToro's extensive trading platform with Zengo's innovative keyless wallet technology.

Zengo has garnered over two million users globally since its inception in 2018, utilizing advanced multi-party computation (MPC) to provide secure digital asset management.

Yoni Assia, eToro’s co-founder and CEO, emphasized that self-custody tools play a vital role in the evolving, decentralized financial landscape.

The acquisition will enhance eToro's offerings, enabling users to engage in token swaps and staking while maintaining independent control over their assets.

Zengo’s technology has not experienced any security breaches, a testament to its robust design that addresses common user concerns like lost seed phrases.

Post-acquisition, Zengo will operate separately from eToro's regulated services, allowing for continued interactions with various third-party protocols.

This acquisition reflects eToro's commitment to delivering innovative crypto solutions and expanding its services to adapt to the rapidly changing digital asset ecosystem.

As eToro also recently expanded its crypto offerings in the U.S., this acquisition positions it as a leader in the integration of traditional and modern investment strategies.

With the market showing signs of recovery, eToro's stock has risen notably, bolstering its prospects in the expanding crypto landscape.