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