Crypto wallet provider Zengo has made a strategic move to broaden its user base by acquiring Minke, a wallet specializing in stablecoins.

According to Zengo co-founder and CEO Ouriel Ohayon, discussions for the acquisition commenced less than a month ago, swiftly culminating in the deal. Ohayon highlighted the alignment of interests, stating that Minke sought a new home for its users while Zengo provided an ideal fit.

Minke's co-founder and CEO Josh Reyes explained that the decision to seek a new home for its users stemmed from a desire to focus on another venture, OpenPeer Labs, which is developing a decentralized peer-to-peer exchange. Reyes cited Zengo's robust security measures and retail-oriented approach as key factors in selecting them as the new custodian for Minke's users.

Established in 2021 in Australia, Minke boasted a user base of around 50,000 at its peak. As part of the acquisition, Zengo aims to transition Minke's users to its platform, augmenting its existing user base of over 1 million.

While users of Minke, operating as a self-custodial wallet, have the flexibility to migrate to any other wallet using their seed phrases, Reyes expressed confidence that most users would transition to Zengo. He emphasized that Minke users, many of whom are new to crypto, would receive substantial support and guidance throughout the migration process.

As part of the acquisition deal, Minke will discontinue its wallet and brand. While its Android app currently faces challenges due to delisting by Google, existing users retain access to the app as the situation is being addressed.

While the financial terms of the acquisition were not disclosed, Reyes noted that Minke had raised $650,000 in a pre-seed funding round in 2022, and investors will receive proceeds from the acquisition. With a small team of five members, all of whom have shifted to OpenPeer, Zengo's acquisition of Minke marks its first foray into acquisitions.

Founded in 2018 in Israel, Zengo boasts backing from high-profile investors like Insight Partners, Austin Rief Ventures, and Samsung Next. While Zengo had previously sought to raise $10 million at a $100 million valuation, the details of its fundraising remain undisclosed. With the acquisition of Minke, Zengo signals openness to further strategic acquisitions, aiming to capitalize on opportunities in the evolving crypto landscape.