LayerZero Partners with Anchorage Digital for Regulated Stablecoins

LayerZero has made a strong case for regulated stablecoin issuance in its quest to achieve mass adoption. According to the company, banks and corporate treasuries require digital assets that meet regulatory requirements before integrating them into their operations.

In a recent announcement, Anchorage Digital selected LayerZero as its preferred interoperability layer for stablecoins issued through its federally chartered bank. Tether's USAT is the first stablecoin to use LayerZero's OFT standard under this arrangement, which has processed $280 billion across over 170 blockchains worldwide.

LayerZero emphasizes that regulated stablecoins are essential for banks and corporate treasuries due to compliance requirements and reserve management. This is evident in the U.S. law, which requires permitted payment stablecoin issuers to maintain identifiable reserves of at least 1:1 and comply with federal rules on anti-money laundering, sanctions, customer identification, and suspicious-activity monitoring.