eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

In a significant move, eToro has entered into an agreement to acquire Zengo, a leading crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition aims to bring self-custody solutions 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 (MPC) to secure user assets without relying on 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 Yoni Assia, eToro's co-founder and CEO, 'this acquisition reflects our long-term approach to building and growth, even during challenging times.' Zengo, established in 2018, boasts over 2 million global users and offers features such as token swaps, staking, and fiat onramps. The Zengo wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols.