eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

In a significant move, eToro has entered into an agreement to acquire Zengo, a leading crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition combines eToro's multi-asset trading network with Zengo's cutting-edge, non-custodial wallet technology. A non-custodial wallet empowers users to maintain direct control over their funds by managing the wallet keys themselves. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user assets without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to enable eToro to expand its support for emerging crypto use cases, including tokenized assets, decentralized markets, prediction platforms, and perpetual futures. According to Yoni Assia, eToro's co-founder and CEO, 'This acquisition reflects our long-term strategy, which we often refer to as building during crypto downtimes.' Founded in 2018, Zengo boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending the fulfillment of closing conditions, with the exact terms of the deal not being publicly disclosed, although reports suggest it is worth around $70 million.