Defi.money integrates LayerZero as interoperability solution

Chain-agnostic stablecoin protocol defi.money has integrated LayerZero to enhance its network with omnichain liquidity.

LayerZero, an interoperability solution, serves as a foundational layer for omnichain applications and blockchains. The LayerZero team announced this integration in a post on X on September 26.

This move aligns with the recent implementation of the omnichain fungible token (OFT) standard for defi.money’s stablecoin, MONEY. The OFT standard facilitates cross-chain token transfers, enabling users to send, receive, and deploy assets across different blockchains, making defi.money natively omnichain.

Growing Importance of Stablecoins

Stablecoins are becoming increasingly vital in the Web3 ecosystem, with cross-chain transfers driving activity in key projects. Layer-2 networks are particularly benefiting, as they focus not only on scalability but also on creating a more interconnected and decentralized ecosystem.

The collaboration between LayerZero and defi.money aims to usher in this new era with the decentralized stablecoin, MONEY.

As of September 26, 2024, the stablecoin market is valued at over $173 billion, with Tether leading at more than $119 billion and USD Coin following at over $36 billion. Other players like First Digital USD and PayPal USD are also gaining traction.

Notably, Ripple has started testing its RLUSD stablecoin on both the Ethereum and XRP Ledger. Additionally, BitGo, a prominent crypto custodian, is exploring the development of a dollar-backed stablecoin, and similar plans are reportedly in consideration by U.K.-based digital bank Revolut.