eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

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 is set to bring self-custody tools to eToro's trading platform, combining the company's multi-asset investing network with Zengo's advanced non-custodial wallet technology. A non-custodial wallet empowers users to have direct control over their funds by managing the wallet keys personally. 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. The acquisition is expected to enhance eToro's support for emerging crypto use cases, including tokenized assets and decentralized markets. According to Yoni Assia, eToro's co-founder and CEO, this move reflects the company's long-term strategy, particularly during crypto downtimes. Founded in 2018, Zengo offers a range of features such as token swaps, staking, and fiat onramps, with a user base of over 2 million globally. The Zengo wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.