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 an article on X on September 26.
The integration comes as defi.money’s stablecoin MONEY has implemented the omnichain fungible token, also known as OFT.
The OFT standard is a token standard that enables cross-chain token transfers. Users can send, receive and deploy assets on blockchains. With this implementation, defi.money is now natively omnichain.
Growing stablecoin market
Stablecoins are increasingly essential to the web3 ecosystem, and cross-chain transfers are helping to drive more activity in key projects. Most beneficiaries are Layer 2 networks that, beyond scalability, view an interconnected ecosystem as a major step toward decentralization.
LayerZero’s collaboration with defi.money aims to make this era a reality with the decentralized stablecoin MONEY.
With a stablecoin market valued at more than $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 capitalization, while USD Coin (USDC) ranks second, with over $36 billion.
However, other players such as First Digital USD (FDUSD) and PayPal USD (PYUSD) are seeing traction.
Also noteworthy is the entry of Ripple, which has begun testing its stablecoin RLUSD on Ethereum and XRP Ledger.
BitGo, a leading cryptocurrency custodian, is also considering a dollar-backed stablecoin and similar projects are reportedly on the table at British digital bank Revolut.