Tether Investments backs LayerZero Labs as ZRO drops after deleted video talk

The investment was disclosed amid volatility in LayerZero’s ZRO token. Crypto community account Satoshi Club wrote on X that ZRO fell more than 31% from about $2.34 to $1.60 as posts circulated about a now-deleted video that appeared to reference a new blockchain network called Zero.

Tether described LayerZero as widely adopted infrastructure that supports cross-chain transfers of digital assets. It pointed to USDt0 and XAUt0, products developed by Everdawn Labs using LayerZero’s Omnichain Fungible Token standard, as examples of assets designed to move across blockchains without splitting liquidity into separate wrapped versions. Tether stated that USDt0 has processed more than $70 billion in cross-chain value transfers in under 12 months since launch.

The company framed the investment as support for interoperability it views as production-grade and already operating under live market conditions. Tether also referenced its Wallet Development Kit, arguing that combining tooling for wallet development with interoperability rails can help enable real-world use cases such as payments, settlement and custody across multiple networks. It also positioned the stack as compatible with automated, software-driven wallets, including use cases where AI agents transact using stablecoins and other digital assets.

Paolo Ardoino, chief executive of Tether, described the investment as focused on infrastructure delivering real-world utility and linked the technology to cross-chain transfers and automated payment flows. LayerZero chief executive Bryan Pellegrino called the USDt0 deployment a validation step and said the firm plans to continue building interoperability rails with Tether.

Tether Investments is the investment arm of Tether and is based in El Salvador. The unit invests capital drawn from profits and excess reserves across sectors including artificial intelligence, financial services, energy, biotechnology, education and digital media, and it has also taken positions in areas such as commodities, remittances, and sports and entertainment, according to the company.