Tether, the issuer of the world’s largest stablecoin USDT, has announced a strategic investment in LayerZero Labs, the team behind a leading cross-chain interoperability protocol. The financial terms of the deal were not disclosed.
According to Tether’s official announcement, the investment aims to strengthen blockchain interoperability infrastructure and support the expansion of USDT into an omnichain framework.
USDT0: Bringing USDT Across Multiple Chains
Through Everdawn Labs, LayerZero’s interoperability technology has been used to develop USDT0, an omnichain representation of USDT. Unlike traditional bridged assets, USDT0 is designed as a fully composable on-chain representation of USDT, allowing the stablecoin to operate across multiple blockchains — including networks where native USDT has not been directly issued.
USDT0 is minted using LayerZero’s Omnichain Fungible Token (OFT) standard and is backed 1:1 by USDT. This structure is intended to maintain the stability and reserve model associated with Tether while improving cross-chain mobility.
Since its launch in early 2025, USDT0 has reportedly facilitated more than $70 billion in cross-chain transaction volume, reflecting growing demand for seamless liquidity movement between ecosystems.
Strengthening Real-Time Interoperability
Tether CEO Paolo Ardoino stated that LayerZero has built interoperability technology that enables digital assets to move in real time across different transmission layers and distributed ledgers. He described this capability as foundational infrastructure for the broader financial industry.
Interoperability has become a critical focus in the blockchain sector, as liquidity fragmentation across chains remains one of the industry's structural challenges. By leveraging LayerZero’s protocol, Tether aims to enhance USDT’s accessibility and utility across decentralized finance (DeFi), centralized exchanges, and emerging blockchain ecosystems.
Potential Role in AI-Driven Finance
Tether’s team also noted that interoperability solutions could play a role in enabling autonomous AI agents to manage wallets and conduct stablecoin or digital asset transactions at scale. As AI systems increasingly integrate with blockchain-based financial rails, seamless cross-chain functionality may become a key component of automated economic activity.
Broader Expansion Strategy
The LayerZero investment is part of Tether’s broader strategic expansion. In recent months, the company has actively diversified its portfolio beyond stablecoin issuance.
Last week, Tether announced a strategic investment in t-0 Network, a licensed institutional payment platform built around USDT infrastructure. Additionally, the company recently invested $150 million in Gold.com, a direct-to-consumer precious metals trading platform.
These moves highlight Tether’s ongoing efforts to expand its presence across digital payments, interoperability infrastructure, and real-world asset markets.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Readers should conduct their own research before making any financial decisions.
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