EToro Set to Acquire Zengo Crypto Wallet for $70 Million

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 strategic acquisition is set to integrate self-custody tools into eToro's trading platform. By combining eToro's multi-asset investing network with Zengo's non-custodial wallet, users will have greater control over their funds. Zengo's innovative use of multi-party computation (MPC) eliminates the need for a seed phrase, thereby reducing the risks associated with lost or stolen keys. The acquisition is expected to enhance 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 move reflects the company's long-term approach to building and growth. Zengo, established in 2018, boasts over 2 million global users and offers features such as 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.