eToro Announces $70 Million Acquisition of Zengo Crypto Wallet

In a significant move, eToro has reached an agreement to acquire Zengo, a prominent crypto wallet provider, for a reported $70 million. This strategic acquisition aims to bolster eToro's trading platform by incorporating self-custody tools, thereby enhancing the overall user experience. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will have greater control over their funds. Zengo's cutting-edge technology, which utilizes multi-party computation (MPC) to secure user funds without relying on seed phrases, is designed to mitigate common risks associated with lost or stolen keys. This acquisition is expected to enable eToro to support a wider range of 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, even during periods of market downturn. Zengo, which was founded in 2018, boasts an impressive user base of over 2 million globally and offers a range of features, including token swaps, staking, and fiat onramps. Following the acquisition, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols.