eToro Reaches $70 Million Deal to Acquire Zengo Crypto Wallet

In a move to bolster its trading platform, eToro has entered into an agreement to acquire Zengo, a provider of crypto wallets, in a deal reportedly valued at approximately $70 million. This acquisition brings together eToro's extensive multi-asset investment network and Zengo's cutting-edge non-custodial wallet technology. Non-custodial wallets empower users to have direct control over their funds by managing the wallet keys themselves. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user assets without relying on seed phrases, thereby reducing the risks associated with lost or stolen keys. According to eToro, this acquisition will enable the platform to support emerging crypto use cases, including tokenized assets and decentralized markets, such as prediction platforms and perpetual futures. eToro's co-founder and CEO, Yoni Assia, highlighted the company's long-term strategy, stating, 'As we often say, crypto downtimes are the time to build, and this acquisition reflects that long-term approach.' 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 the fulfillment of closing conditions. While the terms of the deal have not been officially disclosed by eToro, Bloomberg has reported it to be worth around $70 million.