eToro Set to Acquire Zengo Crypto Wallet in $70 Million Deal

eToro has reached an agreement to acquire Zengo, a crypto wallet provider, in a deal reportedly valued at approximately $70 million, aiming to integrate 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 wallet utilizes multi-party computation to secure user assets without the need for a seed phrase, reducing the risks associated with lost or stolen keys. This acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, views this acquisition as part of the company's long-term strategy. Zengo, established in 2018, offers various features such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. The Zengo wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols.