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, for a reported $70 million. This acquisition brings self-custody capabilities to eToro's trading platform, pairing its multi-asset investing network with Zengo's non-custodial wallet technology. The non-custodial wallet allows users to maintain control over their funds by directly managing the wallet keys. Zengo's innovative use of multi-party computation (MPC) ensures the security of 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's expansion into newer 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 growth. Zengo, established in 2018, offers a range of features such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. Following the acquisition, Zengo's wallet will operate separately from eToro's regulated services, allowing users to interact directly with third-party protocols.