Tether invests in Zengo: the future of self-custody for stablecoin

The investment of Tether in Zengo, a self-custodial crypto wallet, marks an important step in the evolution of managing stablecoins like USDt.  

In the world of cryptocurrencies, security and control of digital assets are fundamental elements. The adoption of self-custodial solutions, which allow users to maintain full control over their funds without intermediaries, is becoming increasingly crucial.

Stablecoin news: Tether and the strategic investment in Zengo  

Tether, the issuer of the stablecoin USDt, has decided to support Zengo with a significant investment. This move is part of a broader framework to promote secure and decentralized custody for stablecoin users. 

Zengo is known for its innovative approach to security, based on an infrastructure without traditional private keys, which reduces the risk of loss or theft of digital assets.  

The objective of this collaboration is to provide stablecoin users with a safer and more accessible option to manage their funds. 

With the increase in the adoption of criptovalute, the need for tools that ensure effective protection against cyber attacks and fraud also grows.

One of the most innovative aspects of Zengo is the use of Multi-Party Computation (MPC), a technology that eliminates the need for a unique private key. 

Instead of entrusting security to a single string of characters, the wallet divides the cryptographic information into multiple parts, distributed between the user’s device and a secure server.  

This system offers several advantages:  

• – Reduction of the risk of loss: There is no private key that can be forgotten or stolen.  
• – Greater protection against hacker attacks: Without a single point of vulnerability, it is more difficult for malicious actors to access the funds.  
• – Ease of use: Users can recover their wallet without complicated backup procedures.  

The impact of Tether’s initiative on the stablecoin sector  

The entry of Tether into the self-custody sector with support for Zengo could have significant implications for the adoption of stablecoin.

Traditionally, many users rely on centralized exchanges to store and manage their cryptocurrencies, exposing themselves to the risk of cyber attacks or platform failures.  

With Zengo, USDt users will have a secure alternative, eliminating the need to deposit funds with third parties. 

This is particularly relevant in a context where regulation on stablecoins is becoming more stringent and investors are seeking solutions that guarantee greater autonomy and transparency.  

The adoption of self-custodial wallets like Zengo represents a natural evolution for the cryptocurrency sector. 

Users are becoming increasingly aware of the risks associated with centralized custody and are seeking solutions that offer greater security and control over their assets.  

Furthermore, the integration of USDt into an advanced wallet like Zengo could promote a wider adoption of stablecoins among less experienced users, thanks to an intuitive interface and advanced security features.  

The investment of Tether in Zengo marks an important step towards a more secure and decentralized crypto ecosystem. 

The combination of the stability of USDt and Zengo’s innovative MPC technology offers users a reliable solution for the autonomous management of their stablecoin.  

As the sector evolves, the adoption of self-custodial solutions will become increasingly central, offering new opportunities to enhance the security and accessibility of cryptocurrencies.