eToro Acquires Zengo for Seventy Million Deal

Globes has reported that online broker eToro acquires crypto wallet and custody technology company Zengo at a valuation of approximately $70 million, with the deal primarily settled in cash. Although both parties chose not to officially disclose the financial terms, sources familiar with the transaction confirmed the valuation details. 

Zengo, founded in 2018, has positioned itself as an innovative player in the crypto wallet space, particularly through its focus on secure self-custody solutions. The company last raised $20 million in a Series A funding round about five years ago. According to Globes, Zengo has secured a total of $24 million in funding since its inception, including earlier seed-stage investments. 

eToro Acquires Zengo for Seventy Million Deal

However, industry insiders indicate that the acquisition price closely aligns with the company’s 2021 valuation. As a result, investors appear to have achieved only modest returns, potentially breaking even or generating a low single-digit internal rate of return depending on deal structuring. 

Meanwhile, Yoni Assia officially announced the acquisition during his appearance at the Paris Blockchain Week, highlighting the strategic importance of the deal. He later elaborated on the move through a LinkedIn post, emphasizing his long-standing familiarity with Zengo’s leadership, including co-founder Ouriel Ohayon, and the company’s approach to crypto self-custody. Furthermore, Assia underscored the growing significance of user-controlled digital finance, noting that self-custody solutions are becoming central to the evolution of the financial ecosystem. He explained that the acquisition aligns with eToro’s broader vision of integrating traditional financial services with crypto-native technologies. 

As a result, the deal represents a strategic step toward offering a more unified platform where users can manage both conventional and digital assets seamlessly. At the same time, it reflects a wider industry trend in which established fintech firms continue to expand their presence in the crypto sector through targeted acquisitions.

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