Tether is doubling down on blockchain infrastructure with a strategic investment in interoperability developer LayerZero Labs. The move underscores the growing importance of cross-chain technology as crypto shifts toward a multi-network future, positioning Tether closer to the core rails powering global digital asset liquidity.
Tether Deepens Bet on Interoperability With LayerZero Investment
Tether, in a recent release, announced a strategic investment in LayerZero Labs, the development company responsible for the LayerZero interoperability protocol. The move further cements the growing relationship between the stablecoin giant and the cross-chain infrastructure provider.
Notably, Everdawn Labs had previously tapped LayerZero’s interoperability infrastructure to build and deploy the omnichain version of Tether’s flagship stablecoin, USDT. The cross-chain coin, branded USDT0, serves as a direct representation of USDT on supported blockchains, making the world’s largest stablecoin available on chains where it was not natively issued.
Interestingly, since its launch in 2025, USDT0 has reportedly been used to execute more than $70 billion in cross-chain transactions, underscoring strong demand for seamless stablecoin mobility across blockchain ecosystems. Commenting on the strategic investment, Tether CEO Paolo Ardoino stated that the firm focuses on backing infrastructure that is already delivering real-world utility.
According to Ardoino, LayerZero has achieved this by building interoperability rails that allow users to transfer digital assets across virtually any layer and blockchain network. Meanwhile, it is worth noting that Tether did not disclose the size of the investment or the exact stake acquired in LayerZero Labs.
Why Interoperability Is Becoming Crypto’s Next Battlefield
As the crypto industry matures, interoperability is emerging as one of the most important technological battlegrounds. With the rise of Layer 2 networks, application-specific chains, and alternative Layer 1 ecosystems, users increasingly demand seamless cross-chain experiences.
LayerZero’s technology addresses these needs by enabling secure messaging between blockchains, a critical function for cross-chain token transfers, governance coordination, and multi-chain DeFi protocols.
For Tether, stronger interoperability could mean wider adoption of its stablecoins across new and emerging ecosystems. The easier it becomes to move stablecoins between chains, the more embedded they become in global crypto liquidity flows.
Tether’s Broader Investment Push, and Token Reaction
Aside from its investment in LayerZero Labs, Tether has been aggressively deploying the billions it generates from backing USDT into a wide range of strategic investments. This includes taking a stake in video-sharing platform Rumble and acquiring a majority stake in Latin American agricultural firm Adecoagro.
The firm has also signaled strong bullish conviction on gold. The firm recently purchased a $150 million stake in a gold-focused platform that supports the distribution and accessibility of tokenized gold products, underscoring its growing interest in real-world asset tokenization.
Meanwhile, following the investment news, LayerZero’s native token ZRO surged by roughly 10%, reflecting initial market optimism. However, the token quickly retraced those gains shortly after, suggesting traders may be waiting for clearer details on the long-term impact of Tether’s involvement.
Evans Kelvin
The CoinRemark Team
Brenda Kanana
