eToro Reaches Agreement 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, in a deal reportedly valued at approximately $70 million. This acquisition is set to bring self-custody solutions to eToro's trading platform. By combining eToro's multi-asset investment network with Zengo's non-custodial wallet technology, users will have greater control over their assets. Zengo's wallet utilizes multi-party computation to secure funds without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. This acquisition is expected to support the development of newer crypto applications, including tokenized assets and decentralized markets. eToro's CEO, Yoni Assia, emphasized the company's long-term approach, stating that this acquisition reflects their commitment to building during crypto downtimes. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with over 2 million users worldwide. The wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending closing conditions, with terms of the deal not being publicly disclosed, although reports suggest it is worth around $70 million.