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 advanced non-custodial wallet technology. A non-custodial wallet allows users to maintain full control over their funds by directly managing the wallet's keys. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user assets without the need for 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. According to eToro's co-founder and CEO, Yoni Assia, this acquisition reflects the company's long-term vision and commitment to growth. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. The Zengo wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending closing conditions, with the exact terms of the deal not being disclosed, although it has been reported to be worth around $70 million.