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eToro Expands Self-Custodial Crypto Capabilities With ZenGo Acquisition

eToro Expands Self-Custodial Crypto Capabilities With ZenGo Acquisition

According to eToro, it acquired crypto wallet provider Zengo to strengthen self-custody capabilities and support a broader move toward onchain financial services using MPC-based keyless wallet technology.

Fact Check
The core claim that eToro agreed to acquire ZenGo is supported by the official eToro announcement, "eToro to Acquire Zengo, Expanding Self-Custody Crypto Capabilities," which explicitly says eToro has entered into an agreement to acquire Zengo. The same source also supports the technical description that Zengo uses MPC cryptography and a keyless architecture rather than traditional seed-phrase handling. However, the official announcement does not state an acquisition price of about $70 million, nor does it confirm that Zengo has more than 2 million users. Corroboration attempts via web search did not produce a specific CoinDesk article or another authoritative page validating those two details. So the statement appears partly supported but not fully verified as written.
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Summary

eToro announced the acquisition of crypto wallet provider Zengo in an official announcement aimed at strengthening its self-custody offering and supporting a shift toward onchain financial services. The company did not disclose the transaction value in the new announcement. eToro said Zengo’s wallet uses MPC technology and a keyless architecture, adding infrastructure intended to expand self-custodial crypto capabilities. The new information updates earlier reporting that had cited an undisclosed-source purchase price estimate, while eToro’s announcement itself focused on the strategic rationale for the deal.

Terms & Concepts
  • MPC: Multi-Party Computation is a cryptographic method for managing wallet security across multiple parties or components instead of relying on a single key.
  • keyless wallet: A wallet design that avoids a traditional single private key or seed phrase, using alternative cryptographic architecture for access and recovery.
  • self-custody: A model in which users retain direct control over their crypto assets rather than relying on a third-party custodian to hold them.