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 together eToro's extensive multi-asset investing network and Zengo's innovative non-custodial wallet technology. The non-custodial wallet allows users to maintain direct control over their funds by managing the wallet keys themselves. Zengo's technology 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. According to eToro, this acquisition will enable the platform 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 offers a range of features, including token swaps, staking, and fiat onramps, with over 2 million users worldwide. Following the acquisition, Zengo's wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is subject to closing conditions, with the terms of the deal not being publicly disclosed, although it has been reported to be worth around $70 million.