eToro Expands Self-Custody Offering with Acquisition of Crypto Wallet Pioneer Zengo

The global investment platform eToro has announced its acquisition of Zengo, a leading provider of secure, self-custodial crypto wallets. This strategic move aligns with eToro’s vision of bridging traditional finance with decentralized infrastructure and empowering users with greater control over their digital assets.

Key Highlights of the Acquisition:

• Enhanced Security: Zengo’s wallet technology utilizes multi-party computation (MPC) cryptography, eliminating seed phrase vulnerabilities that have plagued other self-custody solutions. Since its inception, no Zengo wallet has been hacked.
• Comprehensive Functionality: The Zengo wallet offers a complete suite of features including on/off ramps for converting fiat to crypto, token swaps, staking capabilities, and direct access to decentralized applications (dApps).
• Regulatory Framework: While expanding into self-custody, eToro maintains its commitment to regulatory compliance by ensuring the Zengo wallet operates separately from its regulated exchange services.

This acquisition marks a significant step for eToro as it seeks to cater to evolving investor preferences and support emerging digital asset use cases such as tokenized assets and decentralized trading models. Ouriel Ohayon, co-founder and CEO of Zengo, noted that the partnership will allow them to “accelerate our mission at a global scale” while connecting self-custody solutions to eToro’s broader investment ecosystem.

Yoni Assia, CEO and co-founder of eToro, emphasized the company’s long-term approach: “As we often say, crypto downtimes are the time to build.” This sentiment aligns with eToro’s continued expansion despite market volatility, as evidenced by recent growth in commodity trading which now accounts for 60% of its trading commissions.

The acquisition is subject to customary closing conditions and represents a strategic investment in the future of digital asset access and control.