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 is set to integrate 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. A non-custodial wallet enables users to directly manage the keys to their wallet, thereby custoding their own funds. Zengo's wallet utilizes multi-party computation (MPC) to secure user funds without the need for a seed phrase, reducing the risks associated with lost or stolen keys. This acquisition is expected 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 crypto downtimes are ideal for building and growth. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with over 2 million users globally. 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.