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Tether makes investment in LayerZero Labs to enhance cross-chain technology and agentic finance.
LayerZero’s Omnichain infrastructure (OFT) facilitates the utilization of liquid stablecoins across various networks and supports “agentic finance” applications.
Key information:
- Tether Investments has provided funding to LayerZero Labs to enhance LayerZero’s cross-chain protocol for USDt0.
- LayerZero’s Omnichain infrastructure (OFT) supports liquid stablecoin applications across diverse networks and promotes “agentic finance” functionalities.
- Details regarding financial terms were not revealed. LayerZero’s ZRO experienced a brief increase while the wider crypto market remained stagnant, but has since entered a downward trend amidst renewed selling pressure.
Tether Investments, the investment division of the prominent stablecoin issuer, has executed a strategic investment in LayerZero Labs, the entity behind the interoperability protocol known as LayerZero.
This investment represents a strategic move regarding the technology that supports USDt0, a blockchain-agnostic variant of Tether’s dollar-pegged token, which has transferred over $70 billion across different blockchains in under a year, as stated in a company press release.
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LayerZero’s infrastructure allows cryptocurrencies to traverse various blockchains without issues related to fragmentation or lack of liquidity. This capability enables developers of financial tools to utilize stablecoins without their assets being confined to a single network.
This same architecture also accommodates more innovative applications, such as AI agents autonomously managing their wallets and executing payments, a concept referred to by Tether as “agentic finance.”
Tether’s investment follows the recent deployment of USDt0 by Everdawn Labs, utilizing LayerZero’s Omnichain Fungible Token (OFT) standard. Together with their tokenized gold product, XAUt0, these initiatives are viewed as practical evaluations of LayerZero’s interoperability system.
The specifics of the financial agreement were not disclosed, and Tether did not respond to a request for further details.
The stablecoin leader has been leveraging the substantial revenue generated from the USDT tokens in circulation to pursue a variety of investments. These have included a majority ownership in the Latin American agricultural company Adecoagro (AGRO), a health application focused on privacy, and a stake in the video-sharing platform Rumble (RUM).
The firm has been actively acquiring gold, and earlier this month, it secured a $150 million investment in Gold.com to enhance the reach of tokenized gold.
LayerZero’s ZRO token saw an increase of up to 10% following the news but quickly reverted, now showing a decrease of 3% in the last 24 hours.
