eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

eToro has entered into an agreement to acquire Zengo, a crypto wallet provider, in a deal valued at approximately $70 million, bringing self-custody tools to its trading platform. This strategic move combines eToro's multi-asset investing network with Zengo's non-custodial wallet technology. Non-custodial wallets enable users to have direct control over their funds by managing the wallet keys themselves. Zengo's wallet utilizes multi-party computation (MPC) to secure user funds without requiring a seed phrase, thereby reducing the 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, stated that this acquisition reflects the company's long-term approach to building and growing during crypto downtimes. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with over 2 million users worldwide. 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 closing conditions, with terms of the deal not being publicly disclosed, although it has been reported to be worth around $70 million.