eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition is set to bring self-custody tools to eToro's trading platform, pairing the company's multi-asset investing network with Zengo's advanced non-custodial wallet technology. A non-custodial wallet empowers users to maintain control over their funds by directly managing the wallet's keys. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user assets without relying on a seed phrase, thereby mitigating the risks associated with lost or stolen keys. According to eToro, this acquisition will enable the company to expand its support for emerging crypto use cases, including tokenized assets and decentralized markets. This move reflects eToro's long-term strategic vision, as emphasized by its co-founder and CEO, Yoni Assia. 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. The Zengo 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 it has been reported to be worth around $70 million.