EToro (ETOR) has agreed to acquire crypto wallet provider Zengo as it introduces self-custody tools into its trading platform in a deal believed to be worth around $70 million.
The deal combines eToro’s multi-asset investment network with Zengo’s non-custodial portfolio, according to an announcement on Wednesday.
A non-custodial wallet allows users to hold their own funds by directly controlling the wallet keys.
Zengo uses multi-party computing, or MPC, to secure user funds without a seed phrase, a design intended to reduce common risks related to lost or stolen keys.
EToro said the deal would help it support new crypto use cases such as tokenized assets and decentralized markets, including prediction platforms and perpetual futures.
“As we often say, crypto downtime is the time to build and this acquisition reflects that long-term approach,” said Yoni Assia, co-founder and CEO of eToro.
Zengo, founded in 2018, offers features such as token swaps, staking, and fiat on-ramps. It reports over 2 million users worldwide. Its wallet will remain separate from eToro’s regulated services, with users interacting directly with third-party protocols, according to Wednesday’s announcement.
The acquisition is subject to closing conditions. An eToro spokesperson told CoinDesk that terms of the deal were not disclosed, although Bloomberg reported it was worth around $70 million.
