eToro Acquire Zengo: Self-Custody Boost

eToro agreed to acquire Zengo, a self-custody wallet provider, in a deal valued at approximately $70 million. eToro acquire Zengo to expand its digital asset infrastructure.

eToro's Expansion into Self-Custody

eToro's acquisition of Zengo adds multi-party computation technology to the platform, eliminating seed phrases and offering access to decentralized applications. Yoni Assia, CEO of eToro, argued that self-custody will play a central role in a more decentralized financial system.

Benefits of Self-Custody

• Enhanced security with multi-party computation technology
• Elimination of seed phrases
• Access to decentralized applications

Key Features of Zengo

Zengo was founded in 2018 and built its product on multi-party computation (MPC), a cryptographic architecture that eliminates the need for seed phrases. The wallet offers token swaps, staking, and access to decentralized applications. Since its launch, the company has not recorded a single hack and has accumulated more than 2 million users worldwide.

Zengo's Growth and Funding

Zengo had raised $20 million in a Series A round in 2021 and subsequently sought additional funding at a valuation of $100 million.

eToro's Recent Success

eToro debuted on Nasdaq last year with positive results, then reported a surge in profitability during the fourth quarter, driven in part by gains from cryptocurrency derivatives trading. More recently, it began offering cryptocurrency trading in New York after obtaining a BitLicense, breaking into one of the most relevant markets in the United States.

Key Takeaways

• eToro acquires Zengo for approximately $70 million
• Zengo adds self-custody and multi-party computation technology to eToro's platform
• eToro expands its digital asset infrastructure and connects its brokerage service to the onchain ecosystem
• Zengo's integration will allow the wallet to scale globally

Frequently Asked Questions

What is the value of the acquisition deal?

The acquisition deal is valued at approximately $70 million.

What benefits does Zengo's self-custody technology offer?

Zengo's self-custody technology offers enhanced security with multi-party computation technology, elimination of seed phrases, and access to decentralized applications.