eToro Acquires Zengo to Accelerate On-Chain Finance Vision and Enhance Self-Custody for Digital Assets

eToro, the global multi-asset investment platform renowned for its offerings in U.S. stocks and cryptocurrency trading, has announced a significant strategic acquisition: the purchase of Zengo, a cutting-edge cryptocurrency wallet provider. This move marks a pivotal step in eToro’s ambitious “on-chain finance” strategy, aiming to bridge traditional brokerage with the decentralized Web3 ecosystem.

According to a statement released by eToro, Zengo’s innovative self-custodial wallet technology will be seamlessly integrated into the eToro ecosystem upon completion of the acquisition. This integration is set to dramatically expand eToro’s suite of digital asset services, creating a more robust and interconnected experience between its established brokerage platform and the burgeoning on-chain infrastructure.

While eToro has not disclosed the financial terms of the deal, Bloomberg, citing sources familiar with the matter, reported the acquisition to be valued at approximately $70 million.

Zengo: Pioneering Secure and User-Friendly Self-Custody

Founded in 2018, Zengo has distinguished itself in the crypto space by developing a revolutionary seed phrase-less wallet architecture. At its core is Multi-Party Computation (MPC) cryptographic technology, which significantly enhances user convenience by eliminating the need for traditional, cumbersome seed phrases. This innovation simultaneously mitigates critical risks associated with private key loss or exposure, a common pain point for crypto users.

Beyond its robust security framework, Zengo offers a comprehensive suite of features, including seamless token swapping, staking opportunities, and direct access to a wide array of decentralized applications (dApps). With a user base exceeding 2 million and an impeccable security record—having reported zero hacking incidents since its inception—Zengo brings proven technology and a strong community to eToro.

A Direct Gateway to the On-Chain World for eToro

For eToro, the acquisition of Zengo represents a “direct pass” into the rapidly evolving on-chain world. As the cryptocurrency market matures, investor expectations are shifting beyond simple buy-and-sell execution. Platforms are increasingly expected to offer holistic digital asset services. eToro has explicitly outlined its future focus on high-growth areas such as tokenized assets, prediction markets, and crypto perpetual contracts—all areas where Zengo’s technology will provide a foundational advantage.

Yoni Assia, CEO of eToro, emphasized the strategic importance of this move: “Self-custody will play a central role in a more decentralized financial system. This acquisition is a long-term strategic deployment that will empower our users with greater control and access to the decentralized web.”

Ouriel Ohayon, CEO of Zengo, echoed this sentiment, highlighting the mutual benefits: “Joining forces with eToro will enable Zengo’s wallet services to expand globally, seamlessly connecting our advanced self-custody tools with eToro’s broader investment ecosystem.”

The acquisition remains subject to customary closing conditions.

eToro’s Broader Vision and Recent Milestones

The integration of Zengo is part of eToro’s aggressive and strategic expansion within the cryptocurrency landscape. The fintech giant successfully listed on Nasdaq last year and subsequently reported impressive Q4 results, significantly bolstered by the surging demand for crypto derivatives. Adding to its recent achievements, eToro successfully secured the highly coveted New York “BitLicense,” one of the most stringent cryptocurrency operating licenses in the U.S., marking its official entry into this pivotal market.

Zengo, too, has been on a trajectory of continuous innovation. Its recent enhancements include the introduction of a digital asset recovery system, akin to digital inheritance, and the acquisition of Minke, a wallet service specializing in stablecoins. The company previously closed a $20 million Series A funding round in 2021 and subsequently pursued further funding at a $100 million valuation.