eToro Expands Crypto Ecosystem with $70 Million Acquisition of Zengo

eToro has reached an agreement to acquire Zengo, a specialized crypto wallet provider, in a transaction valued at approximately $70 million. The acquisition is designed to merge eToro's extensive multi-asset investing network with Zengo's advanced non-custodial wallet technology. Unlike traditional custodial services, Zengo utilizes multi-party computation (MPC) to secure digital assets. This technology allows users to maintain control of their funds without the need for a traditional seed phrase, significantly reducing the risks associated with lost or stolen private keys. CEO Yoni Assia emphasized that the acquisition is part of a long-term strategy to build during market downturns. By integrating Zengo, eToro intends to support a wider array of crypto use cases, including perpetual futures, prediction platforms, and the trading of tokenized assets. Zengo, which has grown to over 2 million global users since its 2018 inception, provides essential services such as staking, token swaps, and fiat onramps. To maintain regulatory clarity, the wallet will operate separately from eToro's regulated trading services, allowing users to interact directly with third-party protocols. This move signals a shift toward self-custody within mainstream retail trading platforms. By offering non-custodial options, eToro is positioning itself to attract a more sophisticated class of crypto investors who prioritize asset control over convenience.