eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro has reached an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition marks a major milestone for eToro as it incorporates self-custody tools into its 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 innovative use of multi-party computation (MPC) eliminates the need for 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. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach, stating, "As we often say, crypto downtimes are the time to build, and this acquisition reflects that long-term approach." Founded in 2018, Zengo boasts over 2 million users worldwide and offers features such as 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 the deal's terms not being publicly disclosed, although it has been reported to be worth around $70 million.