Tether Backs Zengo Wallet in a Strategic Move to Expand USDT Adoption

Tether is doubling down on mainstream adoption with a new strategic investment in Zengo Wallet, a multi-chain crypto wallet that uses multi-party computation (MPC) for enhanced security. The investment aims to integrate Tether’s stablecoins across major blockchains, offering users a more seamless experience in transacting with USDT and other Tether-backed assets.

Bringing Tether’s Stablecoins to More Users

Zengo Wallet already serves over 1.5 million users worldwide, providing a secure and non-custodial way to manage crypto assets. With Tether’s backing, the wallet will now offer expanded support for USDT and other stablecoins across key blockchains, including Bitcoin, Ethereum, and Toncoin.

One of the biggest selling points of Zengo is its use of MPC, which removes the need for traditional seed phrases while still ensuring strong security. This feature has made it a favorite among crypto users looking for a more user-friendly alternative to legacy wallets.

Zengo Pro Set to Expand With Tether’s Support

Beyond the core wallet, Tether’s investment will also help enhance Zengo Pro, a premium subscription service that includes:

• Theft protection to secure funds against unauthorized access.
• Legacy transfer features to ensure users can pass their digital assets to their heirs.
• Priority customer support for faster assistance.

Zengo’s co-founder and CEO, Ouriel Ohayon, sees this partnership as a major step in advancing self-custody solutions for stablecoins. “Stablecoins are the cornerstone of an inclusive financial future. We are proud to partner with Tether to make self-custody simple, secure, and accessible,” Ohayon said.

MetaMask Criticized as Tether Shifts Focus

Tether CEO Paolo Ardoino has not been shy about his criticisms of MetaMask, one of the most widely used crypto wallets. According to Ardoino, MetaMask has suffered from sluggish performance in recent months, leading him to personally switch to Rabby Wallet before backing Zengo.

This move highlights a growing sentiment in the crypto space—users want faster, more intuitive wallets that don’t compromise on security. By investing in Zengo, Tether is aligning itself with a platform that prioritizes ease of use without sacrificing protection.

USDT’s Market Position and the Competition From USDC

Tether’s USDT remains the world’s most dominant stablecoin, with a market capitalization of approximately $141.8 billion and a 24-hour trading volume of around $47 billion. However, it faces growing competition from Circle’s USDC, particularly in the U.S.

Recent political developments have also played a role in the stablecoin race. Former President Donald Trump has expressed support for USDC through the World Liberty Financial (WLFI) platform, signaling potential regulatory preferences that could influence market trends.

At present, USDT holds a 65% market share in the stablecoin sector, but the increasing adoption of USDC could put pressure on Tether’s dominance. This is why strategic moves like investing in Zengo are crucial—they help cement USDT’s position by ensuring more seamless access and usability.

What’s Next for Tether and Zengo?

With this investment, both companies are looking to push stablecoins further into mainstream adoption. Tether’s backing gives Zengo more credibility and resources to expand its features, while Tether benefits from a more user-friendly entry point for new stablecoin holders.

Tether’s move is also a signal to the broader crypto community—wallet infrastructure is just as important as the assets themselves. Whether this investment will be enough to maintain USDT’s dominance amid growing competition remains to be seen, but it’s clear that Tether is not resting on its laurels.