Tether Doubles Down on Institutional Infrastructure With Dual Investment Spree

Tether is backing two critical infrastructure providers – LayerZero Labs and Anchorage Digital – as the stablecoin issuer shifts its strategy toward enabling institutional adoption of digital assets.

The dual investments target the two primary obstacles restraining mainstream financial participation: the fragmentation of assets across competing blockchains and the absence of clear regulatory frameworks. LayerZero addresses the technical problem; Anchorage Digital addresses the institutional one.

Together, they suggest Tether is betting that the path to ubiquitous stablecoins runs through regulated infrastructure rather than around it.

LayerZero Investment

Tether announced on Tuesday a strategic equity stake in LayerZero Labs, the creator of an interoperability protocol that enables assets to move seamlessly between blockchains. The investment validates LayerZero's technology following a year of significant real-world deployment.

USDt0, a cross-chain version of Tether's USDT built on LayerZero's infrastructure, has facilitated more than $70 billion in cross-chain transfers since launch, demonstrating that fragmentation can be solved through working technology.

"Tether invests in infrastructure that is already delivering real-world utility," CEO Paolo Ardoino said in a statement.

LayerZero CEO Bryan Pellegrino said Tether's investment represented "the ultimate validation" following USDt0's success. The protocol has become the dominant bridging standard in digital assets, and Tether's backing signals alignment with its technology roadmap.

Anchorage Digital Investment

Last week, Tether separately committed $100 million in equity to Anchorage Digital, America's first federally regulated digital asset bank. The investment deepens an existing partnership – Tether already uses Anchorage's infrastructure for custody and stablecoin issuance.

The company holds a national bank charter and offers staking, custody, settlement, and stablecoin issuance services to institutions. Its regulatory standing distinguishes it in a sector where most platforms operate outside traditional banking frameworks.

Anchorage Digital CEO Nathan McCauley said the investment validates the company's thesis that "digital assets would only scale through secure, regulated foundations."