Citadel, ARK Invest back LayerZero…buying its native Layer 1 token 'ZRO' for 'Zero'

LayerZero, a cross-chain protocol developer, has launched its own Layer 1 blockchain, “Zero,” and secured investment from Citadel Securities and ARK Invest.

According to The Block on the 10th (local time), LayerZero said it unveiled the new Layer 1 blockchain Zero and that Citadel Securities and ARK Invest made strategic investments by purchasing LayerZero’s native token, ZRO.

LayerZero explained that Citadel Securities purchased ZRO tokens directly and is reviewing the potential application of LayerZero’s technology in market-infrastructure areas that demand high performance and reliability, such as trading, clearing, and settlement. While Citadel has previously invested in crypto companies such as Ripple and Kraken, direct token purchases are said to be rare.

ARK Invest also participated in an equity investment in LayerZero alongside its purchase of ZRO tokens. The firm, led by Cathie Wood, joined LayerZero’s shareholder base through this investment.

LayerZero also announced a partnership with Google Cloud. Google Cloud plans to work with LayerZero to explore ways to combine blockchain infrastructure with cloud environments.

Central securities depository DTCC has also begun collaborating with LayerZero. DTCC is pursuing the tokenization of liquid assets such as stocks, ETFs, and U.S. Treasuries, and aims to improve security, scalability, and interoperability through this collaboration.

LayerZero said the Zero blockchain adopts a heterogeneous architecture and targets processing up to 2 million transactions per second. This figure is intended to be about 100,000 times Ethereum’s throughput and about 500 times Solana’s.

Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), said it plans to examine whether the Zero blockchain can support a 24-hour trading environment. Previously, Tether made a strategic investment in LayerZero Labs to support interoperability infrastructure.