eToro has agreed to acquire crypto wallet startup Zengo in a deal worth around $70 million, marking its first acquisition since going public last year.
The transaction, expected to be mostly in cash, is aimed at strengthening eToro’s digital asset offering. The company already allows users to trade stocks and cryptocurrencies, and the addition of Zengo will expand how customers store and manage their crypto.
“Capital markets are suddenly copying crypto markets, moving 24/7. We believe the transferability in tokenising those assets is a big step forward as well,” Assia said in an interview. “By strengthening our DeFi capabilities, we’ll be able to converge between capital markets and crypto native markets in a much better way globally.”
Building self-custodial wallets
Founded in 2018, Zengo builds self-custodial wallets, which let users hold their crypto assets without relying on third parties. The company has raised about $24 million to date and is led by co-founder Ouriel Ohayon.
The acquisition comes as eToro looks to deepen its presence in digital assets and diversify its platform. The company currently has a market value of just over $3 billion, with its stock still below post-IPO highs.
eToro had around $1.3 billion in cash and cash equivalents at the end of last year, after the company raised nearly $620 million in its initial public offering in May, reports Bloomberg.
