"As Wall Street embraces blockchain technology, the crypto industry is still dealing with an existential problem: how to scale the tech so that it can handle the massive volume created by traditional finance entities like the New York Stock Exchange. Meanwhile, big banks and trading firms are seeking reassurances that their sensitive client data does not appear on the public ledger of a blockchain like Ethereum or Solana."
"Though a slew of previous blockchain companies have purported to build TradFi-grade trading infrastructure, LayerZero is also announcing an impressive array of Wall Street players who are coming onboard as investors, partners, and advisors, including the market making giant Citadel as well as Ark's Cathie Wood and the Intercontinental Exchange, the parent company of the New York Stock Exchange."
"In an interview with Fortune, cofounder Bryan Pellegrino said that the Zero blockchain can overcome the scaling challenge thanks to a breakthrough on a cutting-edge type of technology known as zero-knowledge proofs, which allows different parties to verify information in a privacy-preserving method."
""[LayerZero] has such an expansive understanding of what's going on in the markets," Wood told Fortune. "Really bringing internet speed to finance-that's a big idea.""
Wall Street faces two core blockchain hurdles: scaling to match high TradFi transaction volumes and keeping sensitive client data off public ledgers. LayerZero proposes Zero, a blockchain engineered to meet institutional throughput and privacy needs by leveraging zero-knowledge proofs for privacy-preserving verification and improved performance. Prominent investors and partners, including Andreessen Horowitz, Sequoia, Citadel, Ark's Cathie Wood, and the Intercontinental Exchange, have aligned with the effort. LayerZero originated as a cross-chain connectivity provider, raised $120 million in 2023 valuing it at $3 billion, and is repositioning toward TradFi-grade trading infrastructure.
#blockchain-scalability #zero-knowledge-proofs #financial-institutions #privacy-preserving-infrastructure
Read at Fortune
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