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

In a significant move, eToro has entered into an agreement to purchase Zengo, a prominent crypto wallet provider, for a reported $70 million. This strategic acquisition brings self-custody tools to eToro's trading platform, combining its multi-asset investing network with Zengo's cutting-edge non-custodial wallet technology. A non-custodial wallet empowers users to maintain control over their funds by directly managing the wallet's keys. Zengo's innovative approach utilizes multi-party computation to secure user assets without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. This deal will enable eToro to expand its support for 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 commitment to building and growing, even during challenging times in the crypto space." Founded in 2018, Zengo boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending the fulfillment of closing conditions, with the exact terms of the deal not being publicly disclosed, although reports suggest it is valued at approximately $70 million.