eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a deal reportedly valued at $70 million, eToro has agreed to acquire Zengo, a provider of crypto wallets, to integrate self-custody tools into its trading platform. The acquisition combines eToro's multi-asset investing network with Zengo's advanced non-custodial wallet technology. This non-custodial approach allows users to have direct control over their funds by managing the wallet keys themselves. Zengo's technology utilizes multi-party computation (MPC) to secure user funds without the need for a seed phrase, thereby reducing the risks associated with lost or stolen keys. According to eToro, this acquisition will enable the company to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's CEO, Yoni Assia, emphasized that this acquisition reflects the company's long-term approach to building and growing 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 Zengo 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 it has been reported to be worth approximately $70 million.