Skip to main content

Tether Makes Strategic Investment in LayerZero Labs

Investment backs interoperability protocol that enabled $70 billion in USDt0 cross-chain transfers

By Amoo Jubril

8 hours ago

Last updated

8 hours ago

Tether Makes Strategic Investment in LayerZero Labs

KEY FACTS

  • Tether Investments announces strategic investment in LayerZero Labs, the company behind major cross-chain interoperability infrastructure
  • LayerZero's technology has processed over $70 billion in USDt0 cross-chain transfers in under twelve months
  • The investment follows Tether's recent $100 million stake in federally regulated Anchorage Digital Bank

Tether Investments has announced a strategic investment in LayerZero Labs, the development company behind one of the most widely adopted interoperability protocols in the digital asset ecosystem. The move strengthens Tether’s commitment to cross-chain infrastructure development.

LayerZero Labs builds bridging technology that enables digital assets to move securely across multiple blockchains. The protocol has become foundational infrastructure for major stablecoin operations worldwide.

The investment aligns with Tether’s broader strategy of supporting systems that reduce blockchain fragmentation. It also aims to improve liquidity efficiency across diverse distributed ledger environments.

Combined with Tether’s Wallet Development Kit, LayerZero’s infrastructure creates advanced rails for digital asset payments and settlements. The technology also supports agentic finance applications for AI-powered autonomous transactions.

USDt0 Proves Cross-Chain Scalability

LayerZero’s interoperability infrastructure has already been tested at scale through real-world implementations. Everdawn Labs leveraged the technology to develop and launch USDt0 and XAUt0 tokens.

Built on LayerZero’s Omnichain Fungible Token standard, USDt0 has processed more than $70 billion in cross-chain value transfers. This milestone was achieved in under twelve months since launch.

The implementation proved that stablecoins can move seamlessly across blockchains without liquidity fragmentation. It served as validation of LayerZero’s technology as critical infrastructure for major digital assets.

Paolo Ardoino, CEO of Tether, emphasized the practical utility driving the investment decision. He noted that LayerZero enables real-time asset transfers across any transport layer and distributed ledger.

“This enables digital assets to serve the infinite agentic AI economy,” Ardoino stated. He added that such infrastructure will orchestrate micro-payments at unprecedented scale.

Bryan Pellegrino, CEO of LayerZero, called Tether “a company the world envies.” He described the USDt0 success as an important stepping stone toward broader collaboration.

“Having Tether deepen its commitment with this investment is the ultimate validation,” Pellegrino said. Both companies plan to continue building rails for global permissionless markets together.

Tether Expands Infrastructure Investment Portfolio

The LayerZero investment follows Tether’s recent $100 million strategic equity stake in Anchorage Digital. That deal was announced on February 4, 2026, targeting America’s first federally regulated digital asset bank.

Anchorage Digital Bank N.A. provides custody, staking, governance, and settlement services to institutions globally. The federally chartered bank operates under direct U.S. regulatory oversight.

Meanwhile, Tether has scaled back separate fundraising efforts following investor pushback. Reports indicated resistance to a proposed $500 billion valuation for the stablecoin giant.

The company has since reduced its private fundraising target to approximately $5 billion. Ardoino confirmed the Anchorage investment just one day after those reports surfaced.

Tether’s investment strategy focuses on production-grade infrastructure with proven track records. Both LayerZero and Anchorage represent established players in their respective sectors.

The stablecoin issuer continues positioning itself as more than a token provider. These investments signal ambitions to control critical infrastructure across the digital asset value chain.

LayerZero’s technology enables stablecoins to function as global settlement instruments. This capability becomes increasingly important as institutional adoption accelerates across multiple blockchain networks.

The partnership addresses a core challenge in decentralized finance: liquidity fragmentation across chains. By supporting seamless cross-chain transfers, the infrastructure enables more efficient capital deployment.

For AI-driven finance applications, the combined Tether-LayerZero stack offers autonomous wallet capabilities. AI agents can execute stablecoin transactions at scale without human intervention using this infrastructure.

Disclaimer: Coinwaft is a crypto media platform providing cryptocurrency news, analysis, and trading information. The content of this article is for informational purposes only and should not be considered as financial, legal, or investment advice. Readers are advised once again to research or consult a financial expert before making any financial decision.

© 2026 Coinwaft. All Rights Reserved.

Amoo Jubril

Amoo Jubril

Writer

I’m a blockchain-focused content writer helping crypto brands build trust through storytelling that’s simple, authentic, and community-driven

Author profile

Get the daily newsletter that helps thousands of investors get early alpha and understand the markets.

By pressing the "Subscribe button" you agree with our Privacy Policy.

© 2026 Coinwaft. All Right Reserved.

Coinwaft uses cookies to offer a better browsing experience. By clicking accept, you consent to our privacy policy & use of cookies.