Tether Invests in LayerZero Labs to Boost Cross-Chain Infrastructure

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Tether Investments has announced a strategic investment in LayerZero Labs, the development company behind one of the most widely adopted cross-chain interoperability protocols in the digital asset industry. The financial terms of the deal were not disclosed.

The investment underscores Tether’s growing commitment to supporting production-grade blockchain infrastructure and signals its confidence in LayerZero’s role as a foundational layer for moving digital assets across multiple blockchain networks.

What Is LayerZero?

LayerZero is a cross-chain interoperability protocol that enables smart contracts on one blockchain to communicate with smart contracts on another. The protocol uses an Omnichain Fungible Token (OFT) standard that allows tokens to move across supported blockchains without relying on traditional bridging solutions, which often involve fragmented liquidity pools and security risks.

LayerZero Labs, the company behind the protocol, has built one of the most widely adopted cross-chain frameworks in the market. Its technology provides secure and efficient movement of digital assets across different blockchains, and it has integrated with numerous leading DeFi projects and blockchain ecosystems, including TON, Ethereum, Arbitrum, Celo, and Tron.

The Connection Between Tether and LayerZero

The investment is not a surprise to close observers of the crypto space. LayerZero’s infrastructure already plays a central role in Tether‘s cross-chain strategy through USDt0, a cross-chain version of USDt.

USDt0 is backed 1:1 with USDt on Ethereum and uses LayerZero’s OFT standard to enable seamless transfers across supported blockchains. Unlike standard USDt, USDt0 is managed by Everdawn Labs and is designed to address interoperability challenges by enabling easier stablecoin transfers across different networks. Over the past year, Everdawn Labs leveraged LayerZero’s interoperability infrastructure to develop both USDt0 and XAUt0, enabling large-scale cross-chain value transfers.

Combined with Tether’s Wallet Development Kit (WDK), LayerZero’s infrastructure provides what Tether describes as “the most advanced foundational rail for digital assets payments, settlements, and custody for real-world use cases”.

What Tether’s CEO Said

Paolo Ardoino, CEO of Tether, framed the investment in practical terms.

“Tether invests in infrastructure that is already delivering real-world utility,” Ardoino said. “LayerZero Labs has built interoperability technology that allows digital assets to be transferred in real-time across any transport layer and distributed ledger, enabling a fundamental utility within the financial industry”.

Ardoino also pointed to the emerging role of AI agents in finance, noting that LayerZero’s infrastructure “enables digital assets to serve the infinite agentic AI economy that will require such primitives to orchestrate micro-payments at an unprecedented scale”.

Strategic Rationale

The investment aligns with Tether’s broader strategy of supporting systems that reduce blockchain fragmentation, improve liquidity efficiency, and enable stablecoins to function as global settlement instruments. In practice, this means backing networks where the same asset can move seamlessly across diverse blockchain environments without splintered liquidity or a complex user experience.

Tether Investments maintains a wide portfolio that includes stakes in artificial intelligence, financial services, energy, biotechnology, education, and digital media, as well as strategic positions in commodities, remittances, and sports and entertainment. The LayerZero investment fits into this broader pattern of supporting ventures with long-term potential to improve access and efficiency across both emerging and developed markets.

LayerZero’s Funding History

LayerZero Labs has raised a total of approximately $318.33 million across multiple funding rounds since its inception in 2021. The company was last valued at $3 billion during its Series B round in April 2023.

Here is a breakdown of all known funding rounds:

The Extended Series A in March 2022 was the largest single round at $135 million, led by Andreessen Horowitz, Sequoia Capital, and FTX Ventures, and it valued the company at $1 billion. The Series B round a year later pushed the valuation to $3 billion. Andreessen Horowitz has been a particularly consistent backer, participating in multiple rounds including a $55 million commitment in April 2025.