EToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a move to expand its offerings, 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 brings together eToro's comprehensive investing network and Zengo's cutting-edge, non-custodial wallet technology. A non-custodial wallet enables users to maintain 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 relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to enhance eToro's support for 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 strategy, particularly during periods of market downturn. Zengo, established in 2018, boasts a range of features such as 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 deal is subject to customary closing conditions, with an eToro spokesperson confirming that the terms of the agreement are not being publicly disclosed, despite reports suggesting a value of around $70 million.