The trading platform eToro has made an agreement to purchase the cryptocurrency wallet company Zengo which has a valuation of approximately 70 million dollars to enhance its activities in the digital asset market.
The acquisition combines eToro’s multi-asset investment platform with Zengo’s non-custodial wallet system. Through a non-custodial wallet system, users maintain complete fund control because they hold their private keys instead of depending on a third party for access.
Zengo’s wallet uses multi-party computation (MPC) as its security method, which eliminates the requirement for a seed phrase. This method intends to decrease security threats that result from lost or stolen keys, which represent a major challenge in cryptocurrency self-custody.
eToro targets growing demand for self-custody and DeFi access
eToro announced the agreement will enable its organization to develop new cryptocurrency applications, which will encompass both virtual assets and decentralized financial systems. The services that provide prediction capabilities and perpetual futures trading are becoming popular among experienced users in the market.
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eToro co-founder and CEO Yoni Assia described the initiative as a component of an extended business plan. The company intends to enhance its operational capabilities during market downturns, according to his statement, because “as we often say, crypto downtimes are the time to build.
Zengo which launched in 2018, provides multiple features, which include token swaps and staking and fiat on-ramps. The company claims to have established a global user base that exceeds 2 million customers. Zengo’s wallet will continue its independent operation after the acquisition from eToro’s authorized business operations. Users maintain direct access to third-party blockchain systems.
The structure indicates that eToro intends to provide its customers with authorized trading solutions while simultaneously offering them decentralized trading solutions that operate independently of a unified platform.
The deal requires completion of specific closing requirements while the complete official terms remain unrevealed. The reports indicate that the acquisition value approaches 70 million dollars according to the acquisition valuation.
The shift demonstrates how platforms in the cryptocurrency sector introduce self-custody features to enable users to manage their assets independently while retaining access to centralized trading functionalities.
