EToro Announces $70 Million Acquisition of Crypto Wallet Provider Zengo

In a move to expand its self-custody capabilities, EToro has entered into an agreement to acquire Zengo, a leading crypto wallet provider, in a deal reportedly valued at approximately $70 million. By combining EToro's multi-asset investing network with Zengo's non-custodial wallet, users will gain greater control over their funds through direct key management. Zengo's wallet utilizes multi-party computation to secure user assets without relying on seed phrases, thereby mitigating risks associated with lost or stolen keys. This acquisition is expected to enable EToro to support 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 the company's long-term approach to building and expanding its services during market downturns. 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 independently of eToro's regulated services, allowing users to interact directly with third-party protocols. The acquisition is subject to customary closing conditions, with terms of the deal not being publicly disclosed, although reports suggest it is worth around $70 million.