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 strategic acquisition aims to incorporate self-custody tools into eToro's trading platform. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will have greater control over their funds. Zengo's wallet 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. This acquisition is expected to enable eToro to support 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 approach to building and expanding its services. Zengo, founded in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with a user base of over 2 million globally. The acquisition is subject to closing conditions, with the terms of the deal not being publicly disclosed.