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 deal brings together eToro's extensive multi-asset investing network and Zengo's advanced non-custodial wallet technology. The non-custodial wallet allows users to have 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 minimizing the risks associated with lost or stolen keys. This acquisition is expected to enable eToro to support emerging crypto use cases, including tokenized assets, decentralized markets, prediction platforms, and perpetual futures. According to Yoni Assia, eToro's co-founder and CEO, 'this acquisition reflects our long-term vision, as we believe that crypto downtimes are opportunities for growth and development.' Founded in 2018, Zengo boasts a range of features, including token swaps, staking, and fiat onramps, with over 2 million users worldwide. 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 terms of the deal not being publicly disclosed, although it is reportedly valued at around $70 million.