LayerZero is positioning itself not only as a cross-chain interoperability protocol but also as an institutional financial infrastructure. In its latest ecosystem report, the project proposed a dedicated Layer 1 network called "Zero," aiming to serve tokenized asset issuance, stablecoin settlement, and 24/7 capital markets.

Launching a new blockchain to support institutional business

The report indicates that LayerZero aims to develop "Zero" into a foundational network for financial applications, rather than simply a cross-chain messaging tool. According to the company, the protocol has cumulatively processed over $260 billion in value transfers and currently covers approximately 70% of cross-chain stablecoin transactions.

The report also mentioned that LayerZero is advancing collaborations or integrations with multiple institutions and infrastructure service providers in an attempt to strengthen its position in the fields of tokenized finance and on-chain settlement.

ZRO remains a core asset of the ecosystem.

At the token level, LayerZero states that ZRO will remain the primary asset for carrying value within the ecosystem. The report discloses that since September 2025, over $112 million has been used for ZRO buybacks, with Stargate protocol revenue also being used for token buybacks.

• Cumulative value transfer: Over $260 billion
• Cross-chain stablecoin transactions account for approximately 70%.
• ZRO's buyback investment: Over $112 million

LayerZero describes this arrangement as a long-term alignment mechanism that links protocol usage, institutional adoption, and token value.

Security discussions intensify following the KelpDAO incident.

Almost simultaneously, on-chain analytics platform L2BEAT released a technical analysis questioning whether migrating a project from LayerZero to Chainlink's CCIP after the KelpDAO vulnerability incident truly brought significantly stronger security.

L2BEAT points out that the risks of cross-chain systems depend not only on the underlying messaging protocol, but also on multi-signature settings, token pool structure, governance permissions, and the operation and maintenance monitoring of each chain. Simply replacing the cross-chain infrastructure does not necessarily solve the core risks.

The analysis suggests that, under certain configurations, CCIP may offer slightly better security than some LayerZero token solutions, but its overall architecture remains complex, and significant operational risks persist in practice. If a single access chain experiences a configuration error or is compromised, the risk could still spread to interconnected systems.

Cross-chain competition shifts to the institutional finance stage

This divergence reflects a shift in the competitive focus within the cross-chain sector. As more traditional financial institutions begin to focus on on-chain settlement and tokenized assets, the market is no longer solely looking at transaction volume and ecosystem size; security architecture is also becoming a crucial indicator of infrastructure competition.