Tether Investments, the funding arm of the main stablecoin issuer, has made a strategic funding in LayerZero Labs, which develops an interoperability protocol referred to as LayerZero.
The transfer is basically a wager on the expertise underpinning USDt0, a blockchain-agnostic model of Tether’s dollar-pegged token that has moved over $70 billion throughout blockchains in lower than a yr, based on a press launch the corporate shared.
LayerZero’s infrastructure permits cryptocurrencies to stream throughout totally different blockchains with out fragmentation or illiquidity. That enables builders constructing monetary instruments to depend on stablecoins with out getting their funds locked in a single community.
That very same structure additionally helps extra experimental use instances, like AI brokers managing their very own wallets and sending funds autonomously, in what Tether referred to as “agentic finance.”
Tether’s funding comes on the heels of USDt0’s deployment by Everdawn Labs and is constructed utilizing LayerZero’s Omnichain Fungible Token (OFT) normal. Alongside their tokenized Tether gold token, XAUt0, the initiatives are seen as real-world checks of LayerZero’s interoperability framework.
The monetary phrases of the deal weren’t disclosed, and Tether didn’t reply to a request for remark.
The stablecoin large has been utilizing the billions it generates from backing USDT tokens in circulation to make a variety of investments. These embrace a majority stake in Latin American agricultural agency Adecoagro (AGRO), a privacy-focused well being app, and a stake in video-sharing platform Rumble (RUM).
The corporate has been aggressively accumulating gold, and earlier this month, itbought a $150 million stake in Gold.com to spice up the distribution of tokenized gold.
LayerZero’s ZRO token gained as a lot as 10% on the information, however rapidly reversed, now decrease by 3% over the previous 24 hours.
