Tether invests in LayerZero to back omnichain USDT expansion

Published: 2026-02-11 04:12:40 |

Tether has completed a strategic investment in LayerZero Labs to support development of efficient, secure cross-chain infrastructure. The amount was not disclosed. LayerZero’s interoperability protocol, integrated via Everdawn Labs, is used to mint an omnichain USDT variant called “USDT0” using the Omnichain Fungible Token (OFT) standard, preserving 1:1 backing with USDT. Since its launch in early 2025, USDT0 has facilitated over $70 billion in cross-chain value transfers. Tether CEO Paolo Ardoino said LayerZero’s technology enables instant transfers across ledgers and transmission layers and called it foundational for future finance. Tether also highlighted potential use cases in the AI space, suggesting LayerZero’s protocol could let AI agents autonomously operate wallets and transact at scale with stablecoins and digital assets. This strategic investment signals Tether’s push to accelerate cross-chain liquidity and infrastructure supporting broader USDT adoption.

Bullish

Strategic backing from Tether for LayerZero and the adoption of an omnichain USDT variant (USDT0) supports greater cross-chain liquidity and wider USDT distribution—factors typically positive for market confidence and trading volumes in stablecoin-linked markets. USDT0’s reported $70+ billion of cross-chain transfers signals meaningful usage and utility; increased interoperability reduces frictions for capital flow between chains, which can lift on-chain activity, DeFi TVL, and demand for liquidity pairs. Short-term, the news may boost sentiment for USDT and LayerZero-related tokens/integrations, increasing trading volumes and narrowing stablecoin spreads. Longer-term, improved cross-chain infrastructure can lower costs and risks of moving value across ecosystems, supporting more complex DeFi and AI-driven trading use cases and enhancing market efficiency. Possible neutral/bearish considerations are regulatory scrutiny of stablecoins and concentration risk if Tether’s influence grows—these could temper upside but do not outweigh the immediate constructive impact on liquidity and interoperability.