eToro Acquires Zengo for $70 Million

eToro, a global trading and investment platform, announced on Wednesday its agreement to acquire Zengo, a self-custodial cryptocurrency wallet provider, in a deal valued at approximately $70 million, mostly in cash. The transaction, reported by Bloomberg citing sources familiar with the matter, aims to integrate Zengo's advanced wallet technology into eToro's ecosystem, enhancing access to decentralized finance products for its more than 40 million registered users.

Zengo, founded in 2018 by CEO Ouriel Ohayon and co-founders Tal Beery and Omer Shlomovits, specializes in multiparty computation cryptography, a keyless system that eliminates traditional seed phrases to reduce security risks like lost or stolen keys. The wallet serves over 2 million users and businesses in more than 180 countries, offering features such as token swaps, staking, fiat on- and off-ramps, and connections to decentralized applications. Prior to the acquisition, Zengo raised $24 million in funding, including a $20 million Series A round in 2021 backed by investors like Insight Partners and Tether.

The deal marks eToro's second acquisition since its Nasdaq debut last May, which raised $620 million and...