LayerZero Unveils “Zero” Blockchain With Backing From Citadel, ICE, ARK and Tether in Bid to Win Wall Street

LayerZero Labs, the interoperability-focused crypto firm best known for connecting blockchains, has announced plans to launch a new blockchain network called Zero, a platform designed specifically to address the concerns that have long slowed Wall Street’s deeper adoption of distributed ledger technology.

The announcement marks a significant shift for the company. Rather than focusing solely on interoperability infrastructure between existing chains, LayerZero is now building a purpose-designed blockchain aimed at institutional finance. The initiative has already drawn backing and participation from major financial players, including Citadel Securities, Intercontinental Exchange, ARK Invest and Tether.

According to information reviewed by Hokanews, Zero is engineered to tackle several of the most frequently cited barriers preventing large financial institutions from fully embracing blockchain systems: limited scalability, slow transaction speeds, insufficient throughput, and a lack of privacy safeguards for sensitive trading and settlement data.

The move places LayerZero at the center of a broader industry push to bridge decentralized technology with traditional capital markets.

A Blockchain Built for Institutional Demands

LayerZero’s new Zero blockchain is being developed with institutional-grade requirements in mind from the outset. Unlike many existing public networks that were designed primarily for retail users and decentralized finance applications, Zero aims to meet the operational scale and regulatory expectations of global financial institutions.

Source: X official

One of the project’s central design features is the use of advanced execution frameworks combined with zero-knowledge proof technology. Zero-knowledge proofs allow transactions to be validated without revealing the underlying sensitive data, an approach that may be particularly attractive to banks, market makers and exchanges that handle proprietary trading strategies and confidential client information.

In addition, the network is being architected to process a significantly higher volume of transactions than many current public chains. Developers involved in the initiative have indicated that the infrastructure is intended to support millions of transactions per second, although such performance claims will ultimately need to be demonstrated under live market conditions.

By addressing both scalability and privacy simultaneously, Zero seeks to position itself as a platform capable of supporting high-frequency trading, large-scale clearing operations and tokenized securities issuance.

Major Financial Institutions Signal Support

Perhaps the most attention-grabbing element of the announcement is the list of traditional finance institutions participating in the project.

Citadel Securities, one of the world’s largest market-making firms, has confirmed that it made a strategic investment by purchasing the project’s token. While the company has not disclosed the size of its position or the valuation at which it invested, the involvement of a firm deeply embedded in global equities and derivatives markets lends credibility to the initiative.

Intercontinental Exchange, the parent company of the New York Stock Exchange, is also working alongside LayerZero as a partner. ICE has been exploring digital asset infrastructure for several years through various initiatives, and its engagement with Zero suggests continued interest in tokenized trading and clearing systems.

Cathie Wood and ARK Invest have taken on advisory and economic roles in the project. ARK has long advocated for blockchain and digital assets as transformative technologies, and Wood’s participation aligns with her firm’s thesis that distributed ledger infrastructure could reshape global financial markets.

Tether, the issuer of one of the most widely used stablecoins, has also confirmed its participation and investment. Stablecoins are often viewed as a critical liquidity layer for tokenized markets, and Tether’s involvement could play a role in facilitating settlement within the Zero ecosystem.

Collectively, these institutions represent a blend of traditional market infrastructure providers, investment managers and crypto-native liquidity participants.

ZRO Token Sees Strong Price Reaction

Following the announcement, LayerZero’s native token, ZRO, experienced a sharp increase in price.

Data from market trackers shows that ZRO rose from approximately $1.66 to around $2.40 within 24 hours, representing a gain of more than 24 percent. Trading volumes also increased significantly during the same period, suggesting heightened investor interest tied to the Zero launch.

Source: CoinMarketCap

Market analysts caution that token price movements following major announcements can reflect short-term enthusiasm rather than long-term valuation shifts. However, the magnitude of the rally indicates that traders are interpreting the institutional backing as a meaningful signal.

While ZRO is distinct from the Zero blockchain itself, investor perception often links the broader ecosystem to the performance and credibility of its native token.

Is Zero Different From Other Blockchains

The cryptocurrency landscape is already crowded with layer-1 and layer-2 networks competing for developers and capital. This has led some observers to question whether Zero represents genuine differentiation or simply adds another chain to an already saturated market.

The distinguishing factor appears to be its explicit institutional focus. Most existing networks were originally designed for open participation, decentralized applications and public-facing use cases. As a result, many struggle to handle high transaction volumes without congestion, and few prioritize data confidentiality at the level required by major financial institutions.

Zero’s architecture is being tailored specifically for regulated financial environments. Privacy-preserving execution through zero-knowledge technology is expected to allow sensitive trading data to remain confidential while still benefiting from blockchain-based verification and auditability.

In addition, its intended throughput capacity far exceeds the needs of typical decentralized applications, reflecting the demands of traditional exchanges and clearinghouses that process enormous daily volumes.

Whether these technical ambitions translate into real-world adoption will depend on performance, regulatory alignment and the willingness of institutions to migrate core infrastructure to distributed networks.

Why Traditional Finance Is Looking to Blockchain

Over the past several years, both blockchain projects and established financial institutions have accelerated efforts to integrate distributed ledger systems into mainstream markets.

There are several reasons driving this convergence.

Faster settlement remains one of the most frequently cited advantages. Traditional equity trades in many jurisdictions settle on a T plus two basis, meaning final settlement occurs two business days after execution. Blockchain-based systems can potentially enable near-instant finality.

Tokenization of assets is another key driver. By converting traditional securities, bonds or real estate into digital tokens, institutions may reduce administrative costs, improve liquidity and expand access to global investors.

Twenty-four hour market access is also a powerful incentive. Unlike traditional exchanges with fixed operating hours, blockchain networks operate continuously, allowing trading and settlement to occur around the clock.

Reduced reliance on intermediaries may further streamline operations. Clearinghouses, custodians and other middle layers could be simplified or partially automated through smart contract infrastructure.

For investors, these efficiencies could translate into lower fees, faster access to capital and improved transparency.

However, institutions have historically been cautious due to concerns around compliance, data privacy and network reliability. Projects like Zero aim to directly address those barriers.

The Strategic Shift for LayerZero

LayerZero built its reputation as an interoperability protocol connecting multiple blockchains. By launching its own blockchain, the company is expanding beyond its original niche.

The strategic shift may reflect a recognition that interoperability alone is not sufficient to capture institutional adoption. Building a dedicated environment optimized for traditional markets could allow LayerZero to exert greater control over performance standards and regulatory design.

Industry observers note that the combination of interoperability expertise and a purpose-built chain could enable Zero to connect seamlessly with other networks while maintaining institutional safeguards.

If successful, Zero may serve as both a high-performance execution environment and a bridge between legacy financial systems and decentralized ecosystems.

Risks and Open Questions

Despite strong backing, the Zero initiative faces several challenges.

Technical performance claims, including transaction capacity in the millions per second, must be validated under real-world conditions. Many blockchain projects have struggled to meet ambitious throughput targets once deployed at scale.

Regulatory scrutiny is another variable. Tokenized securities and blockchain-based clearing systems will require coordination with regulators across jurisdictions. Institutional adoption will depend on clear compliance frameworks.

Market competition also remains intense. Other projects are pursuing similar institutional strategies, including private permissioned chains and hybrid public-private models.

Finally, investor sentiment in crypto markets can be volatile. While ZRO has rallied on the announcement, sustained ecosystem growth will depend on actual deployment and usage rather than speculative enthusiasm.

A Broader Phase for Blockchain in Global Markets

LayerZero’s launch of Zero represents more than a single product announcement. It reflects a broader phase in the evolution of blockchain technology, where the focus is shifting from retail experimentation toward integration with global financial infrastructure.

The participation of Citadel Securities, Intercontinental Exchange, ARK Invest and Tether underscores the seriousness of the initiative. These firms bring market expertise, capital and operational insight that could accelerate development and adoption.

Whether Zero ultimately reshapes trading, clearing and settlement remains to be seen. But the announcement signals that the divide between decentralized networks and traditional finance is narrowing.

As institutions continue exploring distributed ledger solutions, projects that address scalability, privacy and compliance simultaneously may stand a stronger chance of bridging the gap.

Conclusion

LayerZero’s introduction of the Zero blockchain, backed by leading names in traditional finance and crypto, marks a significant milestone in the push to align blockchain infrastructure with Wall Street requirements. By targeting scalability, throughput and privacy at institutional scale, the project aims to overcome the barriers that have historically limited adoption.

If Zero can deliver on its technical promises and navigate regulatory complexity, it may represent a meaningful step toward integrating distributed networks into the core of global financial markets.

hokanews.com – Not Just Crypto News. It’s Crypto Culture.

Writer @Erlin
Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.
 
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