eToro Acquires Self-Custody Crypto Wallet Firm Zengo for $70 Million
The deal signals eToro's strategic push into self-custody solutions amid growing demand for non-custodial crypto infrastructure.
Trading platform eToro has acquired self-custody crypto wallet company Zengo in a $70 million deal, marking a significant expansion into non-custodial infrastructure. The acquisition gives eToro access to Zengo's keyless wallet technology, which eliminates traditional private key management through multi-party computation and biometric authentication.
The deal reflects growing institutional and retail demand for self-custody solutions as crypto users increasingly seek control over their digital assets. Zengo, founded in 2018, has developed wallet technology that simplifies self-custody by removing the complexity of seed phrases and private keys while maintaining security standards. eToro, which serves over 30 million users globally, has primarily operated as a custodial platform where the company holds users' crypto assets.
The acquisition signals broader industry movement toward hybrid custody models as traditional centralized platforms expand self-custody offerings. Following high-profile exchange collapses and regulatory scrutiny, crypto users have increasingly prioritized platforms that offer both custodial and non-custodial options. The deal positions eToro to compete with other major platforms developing self-custody features while potentially attracting users who prefer controlling their own assets.
Industry observers will monitor how eToro integrates Zengo's technology and whether the acquisition accelerates broader adoption of keyless wallet solutions. The success of this integration could influence other centralized platforms to pursue similar acquisitions in the self-custody space.
Source: Decrypt
