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 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 non-custodial wallet technology. By leveraging Zengo's multi-party computation (MPC) security, users can safeguard their funds without relying on seed phrases, thereby mitigating the risks associated with lost or stolen keys. The acquisition is poised to support emerging crypto use cases, including tokenized assets and decentralized markets. eToro's co-founder and CEO, Yoni Assia, emphasized the company's long-term approach, stating that the acquisition reflects their commitment to building and growing during crypto downtimes. Founded in 2018, Zengo boasts over 2 million global users 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.