eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a move to expand its self-custody capabilities, eToro has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal reportedly valued at approximately $70 million. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will gain greater control over their funds. Zengo's wallet utilizes multi-party computation to secure user assets without relying on seed phrases, thereby reducing the risk associated with lost or stolen keys. This acquisition is expected to enable eToro to better support emerging crypto use cases, including tokenized assets and decentralized markets. According to eToro's co-founder and CEO, Yoni Assia, this acquisition reflects the company's long-term strategy, particularly during periods of market downturn. Zengo, which boasts over 2 million global users, offers a range of features such as token swaps, staking, and fiat onramps. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.