Tether makes strategic investment in LayerZero in latest interoperability push

Tether has deepened its push into blockchain infrastructure with a new strategic investment in LayerZero Labs, the company behind one of the crypto industry’s most widely used interoperability protocols.

The deal, announced on Feb. 10, reflects Tether’s growing focus on building the technical foundations needed for stablecoins and tokenized assets to move smoothly across different blockchains.

Financial terms of the investment were not disclosed. LayerZero (ZRO) builds technologies that allow data and tokens to flow safely between blockchains without the need for centralized middlemen. 

Strengthening Cross-Chain Infrastructure

Several major projects are currently supported by its interoperability framework, which has gained widespread adoption in the cryptocurrency sector.

LayerZero’s support for USDt0, Tether’s omnichain version of USDT, and XAUt0, a digital asset backed by gold, are at the heart of the collaboration. Its Omnichain Fungible Token standard serves as the foundation for both tokens. 

This framework prevents the fragmentation that often occurs in cross-chain transfers by enabling 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 function under live market conditions.

The results have 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 for lowering market fragmentation and increasing the viability of stablecoins for international payments and settlements. It holds that more efficient and seamless transactions can result from improved network connectivity.

Expanding Into Payments and Agentic Finance

To support this goal, Tether plans to integrate LayerZero’s infrastructure into its Wallet Development Kit. This kit helps developers build tools for payments, custody, and settlements, making it easier to create real-world financial applications.

Paolo Ardoino, Tether’s chief executive, said the company focuses on investing in platforms that already demonstrate real-world utility. He described LayerZero’s technology as a foundational layer that allows digital assets to move in real time between networks.

The investment is also tied to Tether’s interest in “agentic finance,” where artificial intelligence systems manage wallets and execute transactions independently. As automated payments and micropayments continue to grow, reliable cross-chain infrastructure is seen as increasingly important.

LayerZero chief executive Bryan Pellegrino said the success of USDt0 helped validate the company’s approach. He added that deeper collaboration with Tether would support the development of open and permissionless financial systems.