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 valued at approximately $70 million. This acquisition is set to bring self-custody solutions to 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 assets. Zengo's non-custodial wallet utilizes multi-party computation to secure funds without the need for a seed phrase, minimizing risks associated with lost or stolen keys. The acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, views this acquisition as a long-term strategic move. Zengo, established in 2018, boasts over 2 million global users and offers 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. The deal is subject to closing conditions, with terms not being publicly disclosed, although reports suggest it is worth around $70 million.