Tether Invests in LayerZero Labs for Cross-Chain Stablecoin Usage
The investment arm of stablecoin issuer Tether is backing LayerZero Labs' interoperability technology to advance its token infrastructure.
Tether Investments has entered into a strategic stake in LayerZero Labs, the company behind the eponymous interoperability protocol for cryptocurrencies. The amount of the investment was not disclosed.
The investment underscores Tether's focus on USDt0, a blockchain-agnostic variant of the USDT stablecoin. According to the company, more than $70 billion has been transferred across various blockchains using this technology in less than twelve months [1].
LayerZero's infrastructure enables the seamless flow of cryptocurrencies between different blockchains without fragmenting liquidity. This provides developers of financial instruments the ability to access stablecoins without being tied to a single network. The protocol also supports experimental applications such as AI agents with their own wallets—an area Tether refers to as "Agentic Finance."
The investment follows the launch of USDt0 by Everdawn Labs, based on LayerZero's OFT standard. Tether uses the returns from backing its circulating tokens for various investments, including stakes in agricultural company Adecoagro and video platform Rumble, as well as a recent $150 million stake in Gold.com.
LayerZero's ZRO token initially recorded a price increase of ten percent but subsequently gave back those gains [1].
Sources
- [1]btc-echo.de
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