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 brings together eToro's extensive multi-asset investing network and Zengo's advanced non-custodial wallet technology. By utilizing multi-party computation (MPC), Zengo's wallet offers enhanced security without relying on seed phrases, thereby mitigating risks associated with lost or stolen keys. The acquisition is expected to enable eToro to expand its support for emerging crypto use cases, including tokenized assets, decentralized markets, and prediction platforms. According to Yoni Assia, eToro's co-founder and CEO, this acquisition reflects the company's long-term strategy, particularly during periods of market downturn. Founded in 2018, Zengo boasts over 2 million users worldwide and provides a range of features such as 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. The deal is subject to customary closing conditions, with terms not being publicly disclosed, although it has been reported to be worth around $70 million.