Chain-agnostic stablecoin protocol defi.money has integrated LayerZero to bring omnichain liquidity to its network.
LayerZero (ZRO) is an interoperability solution that provides a foundational layer for omnichain applications and blockchains. The LayerZero team announced the integration in a post to X on September 26.
The integration comes as defi.money’s stablecoin MONEY implemented the omnichain fungible token, also known as OFT.
The OFT standard is a token standard that allows cross-chain token transfers. Users can send, receive and stake assets via blockchains. With this implementation, defi.money is now natively omnichain.
Read more: LayerZero will become BitGo’s official interoperability protocol for WBTC
Growing stablecoin market
Stablecoins are becoming increasingly important to the web3 ecosystem, and cross-chain transfers help drive more activity in key projects. Many of the beneficiaries are layer 2 networks, which, beyond scalability, see an interconnected ecosystem as an important step toward decentralization.
LayerZero’s partnership with defi.money aims to make this era a reality with the decentralized stablecoin MONEY.
With the stablecoin market valued at over $173 billion on September 26, 2024, two companies stand out: Tether and Circle. Tether (USDT) is the largest, with over $119 billion of the total market capitalization, while USD Coin (USDC) is the second largest with over $36 billion.
However, other players such as First Digital USD (FDUSD) and PayPal USD (PYUSD) are seeing traction.
Also notable is the arrival of Ripple, which has started testing its RLUSD stablecoin on the Ethereum and XRP Ledger.
BitGo, a leading crypto custodian, is also eyeing a dollar-backed stablecoin and similar plans are reportedly on the table of British digital bank Revolut.
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