eToro buy Zengo for $70M to expand keyless MPC self-custody
eToro don buy Zengo: Bloomberg report say the retail broker go buy the self-custody wallet provider Zengo for $70M, mostly paid in cash. The deal give eToro ownership of Zengo’s "keyless" multi-party computation (MPC) wallet infrastructure, wey dey split private-key control among many parties and reduce the single point of failure risk wey traditional seed phrases get.
For traders, eToro buy Zengo because e dey shift crypto "access" to "control" of custody tech. Zengo dey serve over 2M users for 180+ countries and dem don expand before by buying stablecoin wallet Minke. After the deal close, Zengo go run as standalone product at first while eToro dey integrate the stack and development team.
Near-term integration targets na to connect eToro’s user base to DeFi-adjacent products like prediction markets, perpetuals, and yield instruments. The move show how regulated firms dey compete for crypto growth by building or buying wallet and custody layers—similar to Charles Schwab’s recent launch of direct BTC/ETH trading for im brokerage accounts.
Bullish
Na step na custody-technology na one regulated retail broker do: eToro don buy Zengo so dem go control “keyless” MPC self-custody infrastructure and dem get plan to direct plenty users go into prediction markets, perpetuals, and yield-style products. This fit make demand expectations for the major coins wey dem usually onboard first for these platforms (specially BTC and ETH, and for eToro also BCH) go up, wey go ginger near-term sentiment. The mostly-cash $70M price tag and the plan to join the stack small-small show say execution risk fit manageable, no be immediate market wahala. Overall, the likely effect na positive sentiment tailwind for BTC/ETH/BCH rather than direct fundamental change, supporting a bullish-to-mildly-positive read.