Defi.money integrates LayerZero as interoperability solution

Chain-agnostic stablecoin protocol defi.money has integrated LayerZero to bring multi-chain 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 on X on September 26.

The integration comes after defi.money’s stablecoin MONEY implemented its 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 distribute assets across blockchains. With this implementation, defi.money is now natively omnichain.

Growing stablecoin market

Stablecoins are becoming increasingly critical to the web3 ecosystem, with cross-chain transfers helping to drive more activity on important projects. Most beneficiaries are layer-2 networks that, beyond aiming for scalability, see an interconnected ecosystem as a major step towards decentralization.

LayerZero’s collaboration with defi.money aims to make this era a reality with its decentralized stablecoin MONEY.

With the stablecoin market valued at over $173 billion as of September 26, 2024, two companies stand out – Tether and Circle. Tether (USDT) is the largest with over $119 billion in total market value, while USD Coin (USDC) ranks as the second largest at over $36 billion.

However, other players like First Digital USD (FDUSD) and PayPal USD (PYUSD) are also gaining momentum.

It is also noteworthy that Ripple has begun testing its RLUSD stablecoin on Ethereum and XRP Ledger.

Leading cryptocurrency custodian BitGo also has its eyes on a dollar-backed stablecoin, and similar plans are reportedly on the table at UK-based digital bank Revolut.