eToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a significant move, eToro (ETOR) has entered into an agreement to acquire Zengo, a prominent crypto wallet provider, for a reported $70 million. This acquisition marks a major step forward in eToro's mission to provide users with a comprehensive trading experience, combining its multi-asset investing network with Zengo's cutting-edge, non-custodial wallet technology. By leveraging Zengo's innovative multi-party computation (MPC) security solution, which eliminates the need for seed phrases, eToro aims to mitigate common risks associated with lost or stolen keys, thereby safeguarding user funds. The integration of Zengo's wallet is expected to support a broader range of crypto use cases, including tokenized assets, decentralized markets, prediction platforms, and perpetual futures. Founded in 2018, Zengo boasts an impressive array of features, such as token swaps, staking, and fiat onramps, with over 2 million users worldwide. Notably, Zengo's wallet will operate independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is pending closing conditions, with eToro's co-founder and CEO, Yoni Assia, emphasizing the company's long-term commitment to building and expanding its offerings, even in challenging market conditions.