eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

eToro has reached an agreement to purchase Zengo, a provider of cryptocurrency wallets, in a deal reportedly valued at approximately $70 million, aiming to integrate self-custody tools into its trading platform. This partnership combines eToro's extensive multi-asset investment network with Zengo's cutting-edge, non-custodial wallet technology, as announced on Wednesday. Zengo's non-custodial wallet enables users to maintain direct control over their funds by managing the wallet keys themselves. The company utilizes multi-party computation (MPC) to secure user assets without relying on seed phrases, thereby minimizing the risks associated with lost or stolen keys. According to eToro, this acquisition will facilitate support for emerging crypto applications, including tokenized assets and decentralized markets, such as prediction platforms and perpetual futures. "As we frequently emphasize, crypto market downturns are opportunities for growth, and this acquisition embodies our long-term vision," stated Yoni Assia, eToro's co-founder and CEO. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. Its wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols, as outlined in Wednesday's announcement. The acquisition is contingent upon the fulfillment of certain closing conditions. While an eToro spokesperson declined to disclose the terms of the deal, Bloomberg reported it to be worth around $70 million.