LayerZero Backs Regulated Stablecoins for Widespread Adoption in Finance

LayerZero has argued that regulated stablecoin issuance is crucial for widespread adoption in finance. The company made this claim after Anchorage Digital selected LayerZero as its preferred interoperability layer for stablecoins issued through its federally chartered bank.

In a recent analysis, LayerZero stated that banks and corporate treasuries require digital assets that meet regulatory requirements before integrating stablecoins into their operations. The company emphasized that regulated issuance is not a constraint on what a stablecoin can be, presenting it as a path toward use by these institutions.

The partnership between Anchorage Digital and LayerZero covers the bank's stablecoin issuance platform, which currently supports products from Tether, Western Union, OSL Group, and Falcon Finance. Tether's $USAT is the first stablecoin confirmed to use LayerZero's Omnichain Fungible Token (OFT) standard under the arrangement.