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 aims to introduce self-custody tools into 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 funds. Zengo's wallet utilizes multi-party computation (MPC) to secure user assets without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to enable eToro to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach, stating that the acquisition reflects their commitment to building and growing during challenging times. Founded in 2018, Zengo boasts over 2 million users worldwide and offers a range of features, including token swaps, staking, and fiat onramps. The 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 reports suggest it is worth around $70 million.