In a significant move to bolster self-custody solutions and promote the global adoption of stablecoins, Tether, the issuer of the world’s largest stablecoin (USDT), has announced a strategic investment in Zengo Wallet, a self-custodial cryptocurrency wallet renowned for its innovative security features.
Advancing Self-Custody Solutions
Launched in 2019, Zengo Wallet has distinguished itself by eliminating the traditional seed phrase vulnerability through the use of multiparty computation (MPC) technology. This approach has enabled Zengo to serve over 1.5 million users worldwide without a single instance of hacking, phishing, or account takeover.
Tether’s investment aims to enhance Zengo’s blockchain-agnostic capabilities, allowing seamless support for Tether’s stablecoins across major blockchain ecosystems. This development will provide users with more options to securely store, transfer, and transact with Tether’s tokens, utilizing Zengo’s advanced features such as built-in payment tools, cross-chain swaps, and 24-hour customer support.
Aligning with Regulatory Trends
This partnership comes at a time when Tether’s USDT is facing increasing regulatory scrutiny in the European Union, with several exchanges delisting the stablecoin to comply with the Markets in Crypto-Assets (MiCA) framework. By investing in self-custodial solutions like Zengo, Tether enables users to maintain control over their assets, circumventing potential restrictions imposed by centralized exchanges.
Leadership Perspectives
Paolo Ardoino, CEO of Tether, emphasized the alignment of this investment with Tether’s mission to empower users:
“Tether is committed to delivering reliable and secure tools that empower users to take control of their digital assets. Our investment in Zengo reflects that commitment.”
Ouriel Ohayon, Co-founder and CEO of Zengo, expressed optimism about the partnership, highlighting the crucial role of stablecoins in shaping a more inclusive financial future:
“We are proud to partner with Tether to make self-custody simple, secure, and accessible.”
Conclusion
Tether’s strategic investment in Zengo Wallet signifies a commitment to enhancing self-custody solutions and promoting the broader adoption of stablecoins. By leveraging Zengo’s innovative security features and user-friendly design, this partnership aims to provide users with greater control and confidence in managing their digital assets amidst evolving regulatory landscapes.
