Stablecoins Resources

Stablecoin issuers deploy their stablecoin using the OFT (Omnichain Fungible Token) Standard to enable their stablecoin to be transferred across blockchains. When a holder moves the stablecoin from one chain to another, supply is burned on the source chain and minted natively on the destination. The transaction is verified by the issuer's chosen DVN providers and delivered by an Executor. The total supply of the stablecoin stays unified across all 170+ chains it lives on — no wrapped copies, no fragmented liquidity, no reconciliation gaps.

Some of the largest and most trusted stablecoins in the world use LayerZero's OFT Standard for cross-chain distribution — including Tether's USDt0 and PayPal/Paxos's PYUSD. In total, over 80% of all cross-chain USD volume runs on OFT, representing over $300B in lifetime volume transferred.

Regulated stablecoin issuers choose OFT standard because it gives them enterprise-grade control they can defend to a regulator. Contracts are immutable, so no third party, including LayerZero, can pause or upgrade the deployment. Issuers configure their own security stack from 55+ DVN providers. AML/KYC controls like allow-lists, deny-lists, pause, and lock are built into the standard, and the entire deployment is auditable end-to-end, with no dependency on a third party to produce the audit trail. LayerZero works directly with asset issuers to design solutions that satisfy established requirements of regulators. We have also worked with issuers like Anchorage Digital to develop frameworks and purpose-built architecture designed to propose solutions to regulators where gaps exist in current established regulations.

A bridged stablecoin locks the real asset on the source chain and mints a wrapped IOU on the destination. That IOU is a different asset, backed by the bridge operator, with its own liquidity pool and reconciliation requirements. A LayerZero-based stablecoin burns supply on the source chain and mints the same native asset on the destination. There's one asset, one unified supply, and no dependency on any wrapping infrastructure. This is why USDt0 (Tether's cross-chain deployment) and PYUSD both use OFT rather than legacy bridge infrastructure.

The OFT Standard includes controls designed with global regulatory requirements in mind. Allow-lists and deny-lists enforce AML/KYC. Per-chain rate limits cap exposure. Pause and lock functions let the issuer respond in seconds without an engineering deploy. Every transaction produces a complete cross-chain audit trail. The issuer, not LayerZero, not any external multisig, controls the deployment end to end. For jurisdictions with data-sovereignty requirements, issuers can run their own private DVN on-premises, as Deutsche Telekom MMS does for GDPR compliance.