Tether has deepened its push into blockchain infrastructure with a new strategic investment in LayerZero Labs, the company behind one of the most widely used interoperability protocols in the crypto industry.
Summary
- Tether Investments supported LayerZero to support blockchain interoperability.
- USDt0 has processed over $70 billion in cross-chain transfers in less than a year.
- The partnership supports AI-based payments, custody tools and financial systems.
The deal, announced on February 10, reflects Tether’s growing focus on building the technical foundations needed to seamlessly move stablecoins and tokenized assets between different blockchains.
Financial terms of the investment were not disclosed. LayerZero (ZRO) creates technologies that allow data and tokens to flow securely between blockchains without the need for centralized intermediaries.
Strengthening cross-chain infrastructure
Several major projects are currently supported by its interoperability framework, which has been widely adopted in the cryptocurrency industry.
LayerZero’s support for USDt0, the omnichain version of Tether’s USDT, and XAUt0, a gold-backed digital asset, are at the heart of the collaboration. Its standard Omnichain Fungible Token serves as the basis for both tokens.
This framework avoids the fragmentation that often occurs in cross-chain transfers by allowing assets to flow seamlessly across multiple blockchain networks while preserving unified liquidity.
In less than a year, USDt0 has enabled more than $70 billion in cross-chain transactions, according to Tether. This level of activity has been cited as evidence that large-scale interoperability can work under real market conditions.
The results helped position LayerZero as a core infrastructure provider in the digital asset ecosystem. Tether said the performance of these systems played a major role in its decision to invest.
According to the company, interoperability is crucial to reduce market fragmentation and increase the viability of stablecoins for international payments and settlements. He argues that more efficient and transparent transactions can result from better network connectivity.
Expansion in payments and agent financing
To achieve this goal, Tether plans to integrate LayerZero’s infrastructure into its wallet SDK. This kit helps developers create tools for payments, custody, and settlements, making it easier to create real-world financial applications.
Paolo Ardoino, chief executive officer of Tether, said the company is focused on investing in platforms that already demonstrate real-world utility. He described LayerZero technology as a foundational layer that allows digital assets to move in real time between networks.
The investment is also linked to Tether’s interest in “agent finance”, where artificial intelligence systems manage wallets and execute transactions independently. As automated payments and micropayments continue to grow, reliable cross-chain infrastructure is considered increasingly important.
Bryan Pellegrino, chief executive of LayerZero, said the success of USDt0 helped validate the company’s approach. He added that closer collaboration with Tether would support the development of open and permissionless financial systems.