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 combines eToro's comprehensive multi-asset investing network with Zengo's advanced non-custodial wallet technology. The non-custodial wallet empowers users to maintain control over their funds by directly managing the wallet keys. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user funds without relying on a seed phrase, thereby reducing the risks associated with lost or stolen keys. According to eToro, this acquisition will facilitate support for 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, emphasized the company's long-term commitment to growth, stating, 'As we often say, crypto downtimes are the time to build, and this acquisition reflects that long-term approach.' Founded in 2018, Zengo boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. Notably, Zengo's 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, with the exact terms of the deal not being publicly disclosed, although it has been reported to be worth around $70 million.