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 combines eToro's comprehensive multi-asset investing network with Zengo's advanced non-custodial wallet solution. By utilizing multi-party computation (MPC) technology, Zengo's wallet ensures the secure storage of user funds without the need for a seed phrase, thus mitigating the risks associated with lost or stolen keys. The integration of Zengo's wallet technology is expected to bolster eToro's support for emerging crypto use cases, including tokenized assets and decentralized markets. According to Yoni Assia, eToro's co-founder and CEO, this acquisition reflects the company's long-term strategy and commitment to building and expanding its offerings, even during market downturns. Founded in 2018, Zengo boasts an impressive user base of over 2 million worldwide 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.