EToro to Purchase Zengo Crypto Wallet for $70 Million

EToro has entered into an agreement to acquire Zengo, a crypto wallet provider, in a deal valued at approximately $70 million, bringing self-custody tools to its trading platform. The acquisition combines EToro's multi-asset investing network with Zengo's non-custodial wallet technology. Non-custodial wallets enable users to maintain control over their funds by directly managing the wallet keys. Zengo utilizes multi-party computation to secure user funds without requiring a seed phrase, reducing the risk associated with lost or stolen keys. The acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. According to EToro's co-founder and CEO, Yoni Assia, this acquisition reflects the company's long-term approach to building during crypto downtimes. Zengo, established in 2018, offers features such as token swaps, staking, and fiat onramps, with over 2 million global users. The wallet will remain separate from EToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is subject to closing conditions, with terms not being disclosed, although it has been reported to be worth around $70 million.