eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro has entered into an agreement to acquire Zengo, a leading crypto wallet provider, in a deal valued at approximately $70 million. This acquisition brings together eToro's comprehensive investing network and Zengo's cutting-edge non-custodial wallet technology. By leveraging Zengo's multi-party computation (MPC) security protocol, users can securely manage their funds without relying on seed phrases, thereby mitigating the risks associated with lost or stolen keys. The integration of Zengo's wallet is expected to support emerging crypto use cases, including tokenized assets, decentralized markets, and prediction platforms. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach to building and growth, particularly during crypto market downturns. Founded in 2018, Zengo boasts over 2 million global users and offers a range of features, including token swaps, staking, and fiat onramps. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, enabling users to interact directly with third-party protocols. The deal is subject to customary closing conditions, with terms not being publicly disclosed, although reports suggest a value of around $70 million.