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 tools to eToro's trading platform, pairing its multi-asset investing network with Zengo's non-custodial wallet technology. Non-custodial wallets empower users to maintain control over their funds by directly managing the wallet keys. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user funds without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. This acquisition is expected to enable eToro to support emerging crypto use cases, including tokenized assets and decentralized markets. According to Yoni Assia, eToro's co-founder and CEO, this acquisition reflects the company's long-term strategy. Founded in 2018, Zengo offers an array of features such as 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.