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 valued at approximately $70 million. This acquisition combines eToro's multi-asset investing network with Zengo's cutting-edge, non-custodial wallet technology. Non-custodial wallets empower users to maintain control over their funds by directly managing the wallet keys. Zengo's innovative approach utilizes multi-party computation (MPC) to secure user assets without relying on seed phrases, thereby mitigating the risks associated with lost or stolen keys. The acquisition is expected to enhance eToro's capabilities in supporting 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 our long-term commitment to building and expanding our offerings, even during challenging times in the crypto market.' Founded in 2018, Zengo boasts an impressive array of features, including token swaps, staking, and fiat onramps, with a global user base exceeding 2 million. Notably, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is contingent upon the fulfillment of certain closing conditions. While the terms of the deal have not been officially disclosed, reports suggest it is valued at around $70 million.