EToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, EToro has entered into an agreement to acquire Zengo, a leading crypto wallet provider, in a deal reportedly valued at approximately $70 million. This acquisition brings self-custody tools to EToro's trading platform, pairing its multi-asset investing network with Zengo's non-custodial wallet. The non-custodial wallet allows users to have direct control over their funds by managing the wallet keys themselves. Zengo's technology utilizes multi-party computation (MPC) to secure user funds without the need for a seed phrase, reducing the risks associated with lost or stolen keys. This acquisition is expected to support EToro's expansion into emerging crypto use cases, including tokenized assets and decentralized markets. According to Yoni Assia, co-founder and CEO of EToro, this move reflects the company's long-term approach to building and growing during crypto downtimes. Founded in 2018, Zengo offers a range of features, including token swaps, staking, and fiat onramps, with over 2 million users worldwide. The Zengo wallet will operate separately from EToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending closing conditions, with terms of the deal not being publicly disclosed, although reports suggest it is valued at around $70 million.