eToro Reaches Deal to Acquire Zengo Crypto Wallet for $70 Million

In a bid to expand its offerings, eToro has entered into an agreement to acquire Zengo, a crypto wallet provider, in a deal reportedly valued at approximately $70 million. This strategic move brings self-custody tools to 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 wallet utilizes multi-party computation to secure user assets without the need for a seed phrase, thereby reducing the risks associated with lost or stolen keys. This acquisition is expected to enable eToro to support emerging crypto use cases, including tokenized assets and decentralized markets. According to eToro's co-founder and CEO, Yoni Assia, this move reflects the company's long-term approach to building and expanding its services. Zengo, which was founded in 2018, boasts over 2 million users worldwide and offers a range of features, including 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.