Tether invests in Zengo wallet for stablecoin growth

Tether (CRYPTO:USDT), the issuer of USDT, has made a strategic investment in Zengo Wallet, a self-custodial cryptocurrency wallet, to promote stablecoin adoption and enhance security.

The investment aims to bolster Zengo's capabilities, enabling seamless support for Tether's stablecoins across major blockchain ecosystems.

The collaboration seeks to make blockchain-based financial tools more secure and accessible.

Zengo's wallet eliminates seed phrase vulnerabilities using multi-party computation (MPC) technology.

Since its launch in 2019, Zengo has served over 1.5 million users, maintaining a strong security record.

According to Tether CEO Paolo Ardoino, the investment reflects Tether's commitment to providing reliable and secure tools that empower users to control their digital assets.

“By supporting Zengo’s innovative approach to self-custody, we aim to help more people worldwide access blockchain technology with confidence, ease, and security," said Ardoino.

The investment will also support the development of Zengo Pro, offering theft protection, legacy transfer capabilities, and real-time assistance.

"Stablecoins are the cornerstone of an inclusive financial future," Zengo Co-founder and CEO Ouriel Ohayon stated, emphasising the partnership's goal to make self-custody simple, secure, and accessible.

According to Zengo, its wallet supports ten major blockchains, including Bitcoin (CRYPTO:BTC), Ethereum (CRYPTO:ETH), and Base.

The partnership comes as Tether's USDT faces regulatory pressure in the EU, with some exchanges delisting the stablecoin to comply with the Markets in Crypto-Assets (MiCA) framework.

This investment underscores the importance of self-custodial wallets, which allow users to freely store their tokens despite potential restrictions from centralised exchanges.

At the time of reporting, the Tether (USDT) price was $0.9996.