eToro acquires Zengo for $70M to integrate non-custodial wallets, enhancing security and supporting new crypto use cases.
Acquisition Overview
eToro (ETOR) has reached an agreement to acquire Zengo, a crypto wallet provider, for approximately $70 million. This move integrates self-custody tools into eToro’s multi-asset trading platform.
The Role of Non-Custodial Wallets
The acquisition aligns with eToro's strategy to offer non-custodial wallets through its trading network. A non-custodial wallet enables users to control their private keys directly, enhancing security and decentralization in the blockchain ecosystem.
Integration and Future Use Cases
With Zengo’s addition, eToro plans to support new crypto use cases such as tokenized assets and decentralized markets like prediction platforms and perpetual futures. Yoni Assia, co-founder and CEO of eToro, emphasized this approach: "As we often say, crypto downtimes are the time to build and this acquisition reflects that long-term approach."
Zengo's Features and User Base
Founded in 2018, Zengo offers features including token swaps, staking, and fiat onramps. It boasts over 2 million users globally. The wallet will operate independently from eToro’s regulated services, ensuring third-party protocol interactions remain seamless.
Acquisition Details
The deal is subject to standard closing conditions, as disclosed in the announcement. While specific financial terms were not revealed by an eToro spokesperson, Bloomberg reported the value of the acquisition to be around $70 million.
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