Tether Invests in LayerZero to Scale USDt0 and Agentic Finance

Tether has made a strategic investment in LayerZero Labs, the company behind the cross-chain infrastructure used by USDt0, as it looks to strengthen its role in next-generation blockchain interoperability and agentic finance.

Key Takeaways

• Tether has invested in LayerZero Labs, the creator of a widely used interoperability protocol that powers USDt0 and other cross-chain digital assets.
• USDt0 has moved over $70 billion in value across blockchains since its launch in early 2025, showing real-world adoption of LayerZero’s Omnichain tech.
• The partnership also supports emerging use cases like agentic finance, where AI agents manage autonomous wallets and execute micro-transactions at scale.
• Tether’s latest investment reflects its broader push into infrastructure, AI-driven finance, and tokenized asset ecosystems.

What Happened?

Tether, the issuer of the world’s most used stablecoin, has made a strategic investment in LayerZero Labs, the developer of an interoperability protocol enabling seamless movement of digital assets across blockchains. While financial terms were not disclosed, the deal highlights Tether’s confidence in LayerZero’s technology, particularly as it underpins the fast-growing USDt0 token.

Powering USDt0 and Cross-Chain Liquidity

LayerZero Labs has developed one of the most adopted bridging technologies in the crypto space, allowing stablecoins and digital assets to move across multiple blockchains without fragmentation or liquidity loss. Its Omnichain Fungible Token (OFT) standard has been at the heart of USDt0 and XAUt0, two tokenized assets launched by Everdawn Labs.

USDt0, a blockchain-agnostic version of USDT, is fully backed 1:1 by standard USDT and provides access to Tether on blockchains where it is not natively issued. Since its debut in early 2025, USDt0 has processed more than $70 billion in cross-chain transfers, making it a compelling proof-of-concept for scalable blockchain interoperability.

Tether’s investment supports its mission to reduce fragmentation across the digital asset space and improve liquidity and settlement efficiency for stablecoins.

Agentic Finance and AI-Powered Wallets

Beyond blockchain bridging, LayerZero’s infrastructure is also key to the emerging field of agentic finance. This concept envisions AI-powered agents managing autonomous wallets, executing real-time transactions using stablecoins and digital assets.

Tether CEO Paolo Ardoino emphasized this vision, stating LayerZero has created technology that enables digital assets to move across any distributed ledger in real-time, which is foundational to the future of finance and AI economies.

Ardoino said:

A Broader Investment Strategy

This move is part of Tether’s expanding portfolio of infrastructure and utility investments. Recent deals include a $150 million investment in Gold.com, a platform for tokenized gold distribution, and support for t-0 network, a USDT-settlement platform aimed at licensed institutions.

Tether has also invested in privacy-focused healthcare apps, video-sharing platforms like Rumble, and even acquired a majority stake in agricultural company Adecoagro.

By backing LayerZero Labs, Tether adds a vital piece to its growing ecosystem that blends financial primitives, real-world utility, and technological innovation.

CoinLaw’s Takeaway

In my experience watching Tether evolve, this move is a power play. They are not just chasing buzzwords like “AI” or “cross-chain” but are backing proven infrastructure that is already moving billions of dollars across blockchains. That’s not vaporware, that’s adoption.

What excites me most is the agentic finance angle. Imagine AI bots with wallets, sending micropayments globally with zero friction. This is where finance is headed, and Tether clearly wants to be the rails for that future. As someone who tracks stablecoin infrastructure closely, I found this investment a smart and strategic alignment with how digital finance will scale.

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