Israel-based social trading platform eToro is acquiring crypto wallet firm Zengo as it moves users toward self-custody.
Retail trading platform eToro has agreed to buy Zengo, a crypto wallet focused on self-custody, to let users hold cryptocurrencies themselves rather than keeping them on the platform.
EToro, which serves more than 30 million registered users globally and offers trading across stocks, ETFs and crypto, is looking to expand beyond its current custodial model. In a Wednesday blog post, eToro said the deal is aimed at expanding its digital asset offering and linking its trading app with on-chain services. The company said:
“Our goal is to provide our users with the knowledge, tools, products and services they need to meet their evolving investment goals.”
Read also: How to Create a Crypto Wallet: Step-by-Step Guide for Beginners
Crypto Wallet Priced at $70M
As eToro explains, the acquisition will bring together the company’s multi-asset platform and distribution with Zengo’s non-custodial wallet technology, supporting the wallet’s “next phase of growth while expanding eToro’s digital asset capabilities.”
While the acquisition terms weren’t disclosed, Bloomberg cited sources familiar with the matter as saying the deal is priced at $70 million “and is mostly made up of cash.” Neither eToro nor Zengo publicly commented on the valuation.
As eToro also explained, there’s no immediate change for users as the integration is expected to happen gradually.
Read more: Tether Launches tether.wallet — A “People’s Wallet” for Global Financial Access
