eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

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 tools to eToro's trading platform, pairing its 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 security approach utilizes multi-party computation (MPC) to safeguard user funds without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to support eToro's expansion into 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 strategy. Zengo, established in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. Its wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.