eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro has reached an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal valued at approximately $70 million. This acquisition marks a crucial step in integrating self-custody tools into eToro's trading platform. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will have greater control over their funds. Zengo's wallet utilizes multi-party computation (MPC) to secure user assets without relying on seed phrases, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach to growth, stating, 'We believe that crypto downtimes are opportunities to build and innovate.' Zengo, established in 2018, boasts over 2 million users worldwide and offers features such as token swaps, staking, and fiat onramps. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.