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Chain-agnostic stablecoin protocol defi.money has integrated LayerZero to bring omnichain liquidity to its network.
LayerZero (ZRO) is an interoperability solution that offers a foundational layer for omnichain applications and blockchains. The LayerZero team announced the integration in a post on X on Sept. 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 for cross-chain token transfers. Users can send, receive, and deploy assets across blockchains. With this implementation, defi.money is now natively omnichain.
Growing stablecoin market
Stablecoins are increasingly critical to the web3 ecosystem, and cross-chain transfers are helping to drive more activity in key projects. Many of the beneficiaries are layer-2 networks, which, beyond eyeing scalability, see an interconnected ecosystem as a major step toward decentralization.
LayerZero’s collaboration with defi.money aims to bring this era into reality with the decentralized stablecoin MONEY.
With the stablecoin market valued at over $173 billion as of Sept. 26, 2024, two companies stand out – Tether and Circle. Tether (USDT) is the largest, with over $119 billion of the total market cap while USD Coin (USDC) ranks as the second-largest, at over $36 billion.
However, other players such as First Digital USD (FDUSD) and PayPal USD (PYUSD) are seeing traction.
Also notable is the entry of Ripple, which has begun 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 U.K-based digital bank Revolut’s table.