eToro Reaches Deal to Acquire Zengo Crypto Wallet for $70 Million

eToro has entered into an agreement to acquire Zengo, a provider of cryptocurrency wallets, in a deal reportedly valued at approximately $70 million. This move aims to incorporate self-custody tools into eToro's trading platform. The acquisition combines eToro's multi-asset investment network with Zengo's non-custodial wallet technology, as announced on Wednesday. Non-custodial wallets enable users to maintain control over their funds by directly managing the wallet keys. Zengo utilizes multi-party computation (MPC) to secure user funds without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. According to eToro, this acquisition will support the development of newer cryptocurrency use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, stated, 'As we often say, crypto downtimes are the time to build, and this acquisition reflects our long-term approach.' Zengo, established in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. The Zengo wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.