EToro Announces $70 Million Acquisition of Zengo Crypto Wallet

In a significant move, eToro has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, for a reported $70 million. This acquisition is set to integrate self-custody tools into eToro's trading platform, combining the company's multi-asset investing network with Zengo's non-custodial wallet technology. Non-custodial wallets empower 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 funds without relying on seed phrases, thereby mitigating risks associated with lost or stolen keys. This acquisition is expected to enable eToro to expand its support for emerging crypto use cases, including tokenized assets and decentralized markets. According to eToro's co-founder and CEO, Yoni Assia, this move reflects the company's long-term strategy, particularly during crypto market downturns. Founded in 2018, Zengo boasts over 2 million global users and 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.