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 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 non-custodial wallet technology. By utilizing multi-party computation (MPC), Zengo's wallet ensures the security of user funds without relying on seed phrases, thereby mitigating the risks associated with lost or stolen keys. The acquisition is expected to enhance eToro's support for emerging crypto use cases, including tokenized assets, decentralized markets, prediction platforms, and perpetual futures. According to Yoni Assia, eToro's co-founder and CEO, this move reflects the company's long-term approach to building and expanding its services, particularly during periods of market downturn. Zengo, which was founded in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.