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, for a reported $70 million. This acquisition aims to integrate self-custody tools into eToro's trading platform, combining the platform's multi-asset investing network with Zengo's non-custodial wallet technology. The non-custodial wallet allows users to maintain control over their funds by directly managing the wallet's keys. Zengo's security features include multi-party computation, which eliminates the need for a seed phrase, thereby reducing the risks associated with lost or stolen keys. This acquisition is expected to support eToro's expansion into newer crypto use cases, such as tokenized assets and decentralized markets, including prediction platforms and perpetual futures. According to Yoni Assia, eToro's co-founder and CEO, this acquisition reflects the company's long-term approach to building and growth. Zengo, established in 2018, offers a range of features, including token swaps, staking, and fiat onramps, with a global user base of over 2 million. 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 terms of the deal not being publicly disclosed, although it has been reported to be worth approximately $70 million.