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 incorporate 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 non-custodial wallet 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. The acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. Yoni Assia, eToro's co-founder and CEO, emphasized the company's long-term approach, stating that crypto downtimes are opportunities for growth. Founded in 2018, Zengo boasts over 2 million global users and offers features such as token swaps, staking, and fiat onramps. Following the acquisition, Zengo's wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols.