eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition marks a major milestone for eToro as it incorporates self-custody tools into its trading platform. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will have greater control over their funds. 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 acquisition is expected to enable eToro to expand its 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 and commitment to building during crypto downtimes. Zengo, established in 2018, boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. 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 the exact terms of the deal not being publicly disclosed, although it is reportedly worth around $70 million.