Tether, through its investment arm, is deepening its commitment to LayerZero Labs with a strategic investment aimed at accelerating the adoption of its cross-chain interoperability infrastructure and expanding stablecoin and tokenized asset rails, according to a Tuesday announcement.
The investment reflects Tether’s confidence in LayerZero’s role as foundational infrastructure for moving digital assets across blockchain networks. Financial terms were not disclosed.
LayerZero’s technology underpins USDt0, a multichain iteration of the USDT stablecoin that has processed more than $70 billion in cross-chain transfers since its debut twelve months ago.
The protocol enables tokens to move between different blockchains without fragmenting liquidity, a persistent challenge for digital asset markets.
Bryan Pellegrino, CEO of LayerZero, called the backing “the ultimate validation” of his company’s engineering work.
USDT remains the dominant dollar-pegged token with a market capitalization of around $185 billion as of now. The stablecoin operates across more than eleven networks and handles roughly $10.5T in annual transfer volume.
LayerZero raised $135 million in a Series B round during March 2022, achieving a $1 billion valuation. The protocol now supports institutional applications, including Fireblocks’ tokenization engine across over 150 blockchains.
Tether indicated the partnership also targets emerging use cases in autonomous finance, where AI-driven agents could operate independent wallets and execute micropayments at scale using stablecoins.
Source: https://cryptobriefing.com/tether-layerzero-investment-stablecoin-uses/
