Tether invests in LayerZero Labs to expand cross-chain infrastructure, boosting stablecoin transfers, liquidity efficiency, and global blockchain interoperability.

Tether Backs LayerZero Labs to Strengthen Cross-Chain Infrastructure

Tether invests in LayerZero Labs to expand cross-chain infrastructure, boosting stablecoin transfers, liquidity efficiency, and global blockchain interoperability.

Tether announced a strategic investment in LayerZero Labs to support cross-chain infrastructure growth across global blockchain ecosystems. The move reflects growing demand for cross-network seamless asset transfers. Moreover, the investment bolsters Tether’s focus on scalable digital payment systems.

Tether Expands Cross-Chain Strategy With LayerZero Investment

LayerZero Labs is the developer behind a top-tier cross-chain interoperability protocol that is used across several blockchains today. According to Tether, support of infrastructure that reduces fragmentation and enhances liquidity efficiency are the goals of the partnership. As a result, stablecoins are able to work better as global settlement tools.

Central to this is USDt0, an omnichain fungible token which is built using LayerZero technology. Since its launch, USDt0 has carried out more than $70 billion in cross-chain transfers. Importantly, this volume has been accomplished in less than a year in live market conditions.

Meanwhile, Tether said that USDt0 is a testament to the real world’s scalability to stablecoins on different blockchains. Therefore, it validates LayerZero’s technology as critical infrastructure. Additionally, the system allows to move assets efficiently without losing any liquidity.

LayerZero’s framework enables tokens to move securely between blockchains without fragmenting. As a result, users feel more seamless transfers and increased capital efficiency. This approach solves long-standing problems of interoperability within crypto markets.

Furthermore, Everdawn Labs used LayerZero infrastructure to deploy USDt0 and XAUt0. These implementations served as proof of concept that stablecoins can work across chains at scale. As such, the results gave institutional participants a boost in confidence.

Infrastructure Targets Payments, Custody, and Agentic Finance Growth

Tether also highlighted that the Tether integration with LayerZero infrastructure includes its Wallet Development Kit. This combination supports payments, settlements, and custody for real-world use cases. In addition, it facilitates agentic finance, where AI agents control autonomous wallets.

Agentic finance wants fast low friction transactions on enormous scale. Therefore, cross-chain infrastructure becomes necessary for micro-payments and automated settlements. Tether stressed that such systems are supportive of the new AI economy.

Paolo Ardoino, the CEO of Tether, said the company invests in infrastructure that brings real utility. He said LayerZero enables the real-time transfer of assets between ledgers. As a result, digital assets become more relevant in financial industry.

LayerZero CEO Bryan Pellegrino welcomed the closer partnership with Tether. He said that USDt0 success was the validation of the interoperability view. Moreover, the investment validates LayerZero’s positioning in the global permissionless markets.

Notably, LayerZero is already powering one of the most adopted bridging frameworks in the world today. This adoption is providing for secure and efficient blockchain connectivity. Consequently, developers can create scalable applications without having liquidity silos.

The investment is in line with Tether’s overall approach of improving the functionality of its stablecoins. By promoting interoperability, Tether hopes to better settle transactions internationally. Therefore, USDt and other related assets can be used in different blockchain environments.

Overall, the partnership indicates an increased sense of institutional confidence in cross-chain infrastructure. As blockchain ecosystems grow, seamless interoperability is becoming a major necessity. Hence, Tether and LayerZero place themselves as the core of the next-generation digital finance.

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