Zengo Raises $20 Million for Secure Crypto Wallet App

ZenGo Secures $20 Million in Series A Funding

ZenGo, a mobile application designed for cryptocurrency management, has successfully completed a $20 million Series A funding round. This investment was spearheaded by Insight Partners.

ZenGo functions as a non-custodial wallet, granting users complete control over their digital assets. The company does not retain management of your cryptocurrency holdings.

Investment Details

In addition to Insight Partners, the funding round saw participation from Distributed Global and Austin Rief Ventures. Existing investors, including Benson Oak, Samsung Next, Elron, Collider Ventures, and FJ Labs, also contributed to this financing.

Differentiating Factors

ZenGo distinguishes itself from other wallet applications through its commitment to enhanced security combined with user-friendly design. It operates within the competitive landscape of non-custodial wallets, alongside platforms like Coinbase Wallet and Argent.

The core of ZenGo’s security lies in its implementation of multiparty computation (MPC). This technology generates and encrypts multiple secrets during wallet creation, distributing them across various storage locations.

MPC and Security

This approach ensures that ZenGo itself cannot directly access user tokens. Furthermore, it provides a recovery mechanism for wallets even in the event of device loss.

MPC is also favored by other cryptocurrency companies focusing on infrastructure and enterprise-level solutions, such as Fireblocks, which recently secured $133 million in funding.

Growth and User Base

However, ZenGo is specifically focused on developing a consumer-facing application. The company processed over $100 million in crypto transactions from 100,000 users throughout 2020.

ZenGo replicated this achievement within the first quarter of 2021, simultaneously adding another 100,000 users to its platform.

Features and Services

Users can explore various DeFi projects and access savings pools directly through the ZenGo app. The startup generates revenue by taking a percentage of these investment activities.

Future Plans

The newly acquired funding will be utilized to further expand ZenGo’s capabilities, maintaining its core security principles. This includes broadening support for additional blockchains and digital assets.

Expect to see increased partnerships and expanded options for purchasing cryptocurrencies and converting them into traditional fiat currencies.

ZenGo has also announced the upcoming launch of a debit card. This will enable users to seamlessly convert their crypto assets and spend them at any location accepting Visa payments.

Ultimately, ZenGo aims to establish itself as a comprehensive crypto super app, prioritizing security as a foundational element.