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Tether Makes Strategic Investment in LayerZero Labs

tether

Tether, the world’s largest stablecoin issuer, announced a strategic investment in LayerZero Labs, the developer of the technology used in USDT0, the multi-chain version of USDT. The investment amount was not disclosed. The move is part of Tether’s broader strategy to expand cross-chain interoperability infrastructure and extend stablecoin liquidity across multiple blockchains.

Some investments arrive quietly. Their impact, however, tends to last. Tether’s move into LayerZero fits squarely into that category.

LayerZero’s infrastructure plays a central role in powering USDT0, Tether’s omnichain stablecoin. With this investment, Tether aims to ensure that stablecoins can move globally without being confined to a single network.

What Does USDT0 Change?

USDT0 is the fully on-chain, cross-chain representation of traditional USDT.

Built on LayerZero’s Omnichain Fungible Token (OFT) standard, the structure allows USDT to reach networks where it isn’t natively issued — without liquidity fragmentation. Tokens remain backed 1:1 by USDT.

It sounds simple. In practice, it’s a meaningful shift. According to Tether, since launching in early 2025, USDT0 has facilitated more than $70 billion in cross-chain value transfers. And that’s just the first year.

Everdawn Labs also played a key role. Using LayerZero’s protocol, Everdawn brought both USDT0 and XAUt0 to market, enabling stablecoins and tokenized assets to move seamlessly across chains without breaking liquidity.

Paolo Ardoino: This Is No Longer Just Crypto Infrastructure

Tether CEO Paolo Ardoino frames LayerZero’s technology in broader terms.

According to Ardoino, LayerZero enables digital assets to be transferred in real time across any transport layer or distributed ledger — a foundational capability for modern finance.

There’s another layer to this story. Tether believes LayerZero’s infrastructure will eventually allow AI agents to operate autonomous wallets, transact at scale with stablecoins, and automate micro-payments. Agentic finance sits quietly in the background of this investment.

LayerZero CEO Bryan Pellegrino describes USDT0 as a major milestone. For him, Tether’s investment validates that the technology has already proven itself in production environments.

Tether Is Expanding Its Investment Portfolio

This move doesn’t stand alone. Widely regarded as one of the most profitable companies in crypto, Tether has been aggressively diversifying its investment strategy. Just last week, the company announced a strategic investment in t-0, a USDT-backed payment network designed for licensed financial institutions.

Earlier, Tether committed $150 million to Gold.com, a direct-to-consumer digital marketplace.

The pattern is becoming clearer: payment rails, liquidity efficiency, and infrastructure that reduces fragmentation.

The LayerZero investment fits neatly into that framework. Tether is positioning stablecoins not merely as transferable assets, but as global settlement instruments.

The Bigger Picture

LayerZero now supports one of the most widely adopted bridging frameworks in the market. Tether’s move signals that interoperability is no longer experimental — it’s production-grade infrastructure. The investment size wasn’t disclosed.

But the message is clear: USDT’s future won’t live on a single chain. And this time, it’s not about price. The rails are being laid.

What Is a Stablecoin?

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