EToro (ETOR) has agreed to acquire crypto wallet provider Zengo as it brings self-storage tools into its trading platform in a deal said to be valued at around $70 million.
The deal pairs eToro’s multi-asset investment network with Zengo’s non-deposit pool, according to an announcement Wednesday.
A non-depot wallet allows users to store their own funds by controlling the keys to the wallet directly.
Zengo uses multi-party computation, or MPC, to secure user funds without a passphrase, a design intended to reduce common risks associated with lost or stolen keys.
EToro said the deal will help it support newer crypto use cases such as tokenized assets and decentralized markets, including prediction platforms and perpetual futures.
“As we often say, crypto downturns are the time to build, and this acquisition reflects that long-term approach,” said eToro co-founder and CEO Yoni Assia.
Founded in 2018, Zengo offers features including token swaps, staking and fiat onramps. It reports more than 2 million users globally. Its wallet will remain separate from eToro’s regulated services, with users interacting directly with third-party protocols, according to Wednesday’s announcement.
The purchase is subject to closing conditions. An eToro spokesperson told CoinDesk that the terms of the deal are not being disclosed, although Bloomberg reported it was worth around $70 million.
UPDATE (April 15, 10:40 UTC): Rewords the first paragraph and replaces “estimated” with “said to be”.
