LayerZero Labs Raises $135 Million for Omnichain Growth
LayerZero Labs has raised $135 million in a funding round co-led by Sequoia Capital, FTX Ventures and Andreessen Horowitz, according to a Wednesday, March 30. Press release.
Coinbase Ventures, PayPal Ventures, Tiger Global, Uniswap Labs and other investors also participated in the round. The funding will go towards new omnichain developments, as LayerZero is also accelerating the development of cross-chain decentralized applications (dApps).
“This round is a huge step forward for LayerZero Labs and the developing interoperability landscape,” said Bryan Pellegrino, CEO and co-founder of LayerZero Labs. “We have brought together some of the best and most respected entities in the world to achieve the same goal: to create the generic messaging layer that underpins all blockchain interoperability.”
The crypto ecosystem has evolved lately, with an increasing demand for high-speed applications. Depending on the release, these applications can include media applications, non-fungible token (NFT) marketplaces, and even games, built on “profitable” blockchains.
However, with infrastructure sparse, users, data, and liquidity have often been fragmented across various applications on different chains. According to the statement, LayerZero solves this problem by providing an omnichain interoperability protocol, apparently uniting dApps on different chains.
LayerZero would have also allowed users to interact with dApps across multiple blockchains, which Ryan Zarickchief technology officer and co-founder of the company, said it would “communicate seamlessly” without the user even realizing it.
With the new funding, LayerZero is now valued at $1 billion.
PYMNTS recently wrote that there is an international group of securities regulators who plan to push a coordinated global response to decentralized finance (DeFi), which has seen more risk lately.
Read more: DeFi risks ‘evolving rapidly’ to threaten traditional markets, securities regulators warn
A report by the International Organization of Securities Commissions (IOSCO) revealed the new task force, which will work to “take timely and coordinated policy action to appropriately address the risks arising from this rapidly growing area. “.
The IOSCO report noted that there are benefits to things like new financial products. IOSCO also found that many DeFi products “mirror” those in regular financial markets, but with less regulation and more risk.