eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

In a bid to expand its offerings, eToro has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal valued at approximately $70 million. By integrating Zengo's self-custody tools into its platform, eToro aims to provide users with a more secure and robust trading experience. The acquisition brings together eToro's multi-asset investing network and Zengo's non-custodial wallet, allowing users to maintain control over their funds by directly managing the wallet keys. Zengo's wallet 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. This acquisition is expected to enable eToro to support emerging crypto use cases, including tokenized assets and decentralized markets. According to Yoni Assia, eToro's co-founder and CEO, this move reflects the company's long-term approach to building and expanding its services, even during challenging market conditions. Founded in 2018, Zengo offers a range of features, including 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.