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 brings self-custody tools to eToro's trading platform, combining its multi-asset investing network with Zengo's advanced non-custodial wallet technology. The non-custodial wallet allows users to have direct control over their funds by managing the wallet keys themselves. Zengo's wallet utilizes multi-party computation (MPC) to secure user funds without the need for a seed phrase, thereby reducing the risks associated with lost or stolen keys. This acquisition is expected to support eToro in catering to 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 approach to building and expanding its services. Zengo, founded in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with over 2 million users globally. The Zengo wallet will operate independently of eToro's regulated services, enabling users to interact directly with third-party protocols.