eToro Reaches Deal to Acquire Zengo Crypto Wallet for $70 Million

In a deal reportedly worth $70 million, eToro has agreed to acquire Zengo, a provider of crypto wallets, to integrate self-custody tools into its platform. By merging eToro's multi-asset investing network with Zengo's non-custodial wallet technology, 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 risk of lost or stolen keys. This acquisition will enable eToro to support emerging crypto use cases, including tokenized assets and decentralized markets. According to eToro's CEO, this move reflects the company's long-term approach to building during crypto downtimes. Zengo, which has over 2 million users worldwide, offers features such as token swaps, staking, and fiat onramps, and its wallet will operate separately from eToro's regulated services.