EToro to Purchase Zengo Crypto Wallet for $70 Million

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 brings self-custody capabilities to eToro's trading platform, combining its multi-asset investing network with Zengo's advanced non-custodial wallet technology. A non-custodial wallet enables users to maintain direct control over their funds by managing the wallet keys themselves. Zengo's innovative approach 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. According to eToro, this acquisition will facilitate support for emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term strategy, stating, 'As we often say, crypto downtimes are the time to build, and this acquisition reflects that approach.' Founded in 2018, Zengo boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a user base of over 2 million globally. The Zengo wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is subject to customary closing conditions, with the terms of the deal not being publicly disclosed, although it has been reported to be worth around $70 million.