eToro Reaches Deal to Acquire Zengo Crypto Wallet for $70 Million

eToro has entered into an agreement to acquire Zengo, a cryptocurrency wallet provider, in a deal reportedly valued at approximately $70 million, integrating self-custody tools into its trading platform. This acquisition combines eToro's multi-asset investment network with Zengo's non-custodial wallet technology. Non-custodial wallets enable users to maintain control over their funds by directly managing the wallet keys. Zengo utilizes multi-party computation (MPC) to secure user funds without requiring a seed phrase, thereby reducing the risks associated with lost or stolen keys. According to eToro, this acquisition will enable the company to support emerging crypto use cases, including tokenized assets and decentralized markets, such as prediction platforms and perpetual futures. eToro's co-founder and CEO, Yoni Assia, stated, "As we often say, crypto downtimes are the time to build, and this acquisition reflects our long-term approach." 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 an eToro spokesperson confirming that the deal terms are not being disclosed, although Bloomberg reported the value to be around $70 million.