eToro Set 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, for a reported $70 million. This acquisition marks a crucial step in integrating self-custody solutions into eToro's trading platform. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will benefit from advanced security features. Zengo's wallet utilizes multi-party computation to secure funds without relying on seed phrases, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach, stating that crypto downtimes are opportunities for growth. Founded in 2018, Zengo boasts over 2 million global users and offers features such as token swaps, staking, and fiat onramps. The wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is subject to closing conditions, with terms of the deal not being publicly disclosed, although it is reportedly valued at around $70 million.