What Is LayerZero's New Zero Blockchain?

LayerZero announced the launch of Zero, a new Layer 1 blockchain designed to address scalability challenges in decentralized networks. The blockchain is backed by major financial and technology partners including Citadel Securities, The Depository Trust & Clearing Corporation (DTCC), Intercontinental Exchange (ICE), and Google Cloud. 

Zero is positioned as core infrastructure for financial markets rather than another platform for crypto applications. The network is scheduled to launch in fall 2026 with three initial zones focused on different use cases.

Citadel Securities made a strategic investment in ZRO, the network's native token, while ARK Invest acquired both LayerZero equity and ZRO tokens. The same day, stablecoin issuer Tether also announced a strategic investment in LayerZero Labs, though the funding amount was not disclosed.

What Is Zero Blockchain And How Does It Work?

Zero introduces what LayerZero calls a heterogeneous blockchain architecture, which differs from traditional blockchain designs. Most blockchains require every node to replicate the same work by validating transactions and updating the ledger. This replication requirement has historically limited blockchain networks to fewer than 10,000 transactions per second.

Zero uses zero-knowledge proofs (ZKPs) and a system called Jolt to separate transaction execution from verification. Zero-knowledge proofs are cryptographic methods that allow one party to prove to another that a statement is true without revealing any information beyond the validity of the statement itself. By decoupling execution from verification, Zero aims to eliminate the fundamental replication bottleneck that constrains traditional blockchain performance.

The network claims to achieve 2 million transactions per second across unlimited zones, with transaction costs as low as $0.000001. For context, Ethereum currently processes around 20 to 30 transactions per second, while Solana handles over 3,000 TPS. Zero's claimed performance represents approximately 100,000 times faster throughput than Ethereum and 500 times faster than Solana.

Bryan Pellegrino, CEO of LayerZero Labs, stated that Zero's architecture "moves the industry's roadmap forward by at least a decade" and expressed the goal of bringing the entire global economy onchain with the technology.

What Makes Zero Different From Other Blockchains?

Zero's primary differentiation comes from its heterogeneous architecture, which allows different parts of the network to perform different functions rather than requiring all nodes to perform identical tasks. This contrasts with homogeneous blockchains where every validator processes every transaction.

The network claims four major technical breakthroughs:

• Compute: Enhanced processing capabilities for transaction execution
• Storage: Improved data storage methods for blockchain state
• Networking: Advanced communication protocols between nodes
• Zero-knowledge proofs: Cryptographic verification without revealing transaction details

These improvements combine to create what LayerZero describes as abundant blockspace, making the network capable of handling significantly higher transaction volumes than existing Layer 1 blockchains.

The network integrates closely with LayerZero's existing cross-chain messaging protocol, embedding interoperability at the base layer. This design aims to create an execution environment tailored to omnichain applications, which are applications that operate across multiple blockchains simultaneously. LayerZero already connects over 165 blockchains through its messaging protocol.

When Will Zero Launch And What Are The Initial Zones?

Zero is scheduled to launch in fall 2026 with three initial zones. Zones are permissionless environments fully owned and governed by the underlying network. Each zone serves a different purpose:

• General-purpose EVM environment: Compatible with any Solidity smart contract, allowing developers to deploy Ethereum-compatible applications
• Privacy-focused payments infrastructure: Designed for private transactions and payment processing
• Trading environment: A canonical environment for trading across all markets and asset classes

The network will be permissionless to validate, build, and transact on from launch. ZRO serves as the network's native token for governance, and LayerZero will provide interoperability between zones and across the 165-plus blockchains it connects.

LayerZero formed an advisory board to support Zero's development. The board includes Cathie Wood (Founder, CEO, and CIO of ARK Invest), Michael Blaugrund (VP of Strategic Initiatives at Intercontinental Exchange), and Caroline Butler (former head of digital assets at BNY Mellon).

Who Are The Major Partners Behind Zero?

Zero has secured partnerships with several heavyweight institutions from traditional finance and technology sectors. Each partner is exploring different applications for the blockchain infrastructure.

Citadel Securities

Citadel Securities, a multi-billion-dollar market maker, is collaborating with LayerZero to provide market structure expertise and evaluate how Zero could apply to trading, clearing, and settlement workflows requiring high performance and reliability. The firm made a strategic investment in ZRO, which represents an unusual move since direct token purchases are not typical for Citadel. The company has previously invested in crypto firms including Ripple and Kraken but primarily through equity stakes.

Notably, Citadel Securities previously told the U.S. Securities and Exchange Commission that DeFi protocols should not be exempt from regulation as exchanges and broker-dealers, showing a more cautious stance on decentralized finance regulation.

DTCC Partnership

DTCC is investigating ways to leverage Zero's technological capabilities to enhance the scalability of its DTC Tokenization Service and Collateral App Chain. The organization actively works on tokenizing liquid assets such as stocks, ETFs, and Treasurys.

Frank La Salla, DTCC's President and CEO, stated that while DTCC has been driving acceptance and adoption of digital assets, realizing blockchain's full potential has been difficult due to limitations in speed and scale. The partnership aims to unlock blockchain value and deliver benefits including collateral mobility, new trading modalities, and programmable assets.

Intercontinental Exchange

ICE, parent company of the New York Stock Exchange and operator of major derivatives exchanges and clearing houses worldwide, is examining potential applications of Zero as it prepares trading and clearing infrastructure to support 24/7 markets and the integration of tokenized collateral.

Michael Blaugrund, Vice President of Strategic Initiatives at ICE, noted that the exploration of Zero's high-performance blockchain architecture aims to deepen understanding of how onchain technology could unlock new use cases across trading, clearing, settlement, and capital formation.

ARK Invest And Google Cloud

ARK Invest became both an equity shareholder in LayerZero and a holder of ZRO tokens. Founder and CEO Cathie Wood joined LayerZero's advisory board, describing the opportunity as historic at the intersection of finance and the internet.

Google Cloud joined as a partner to explore enabling AI agents to make micropayments and trade resources instantly without requiring bank accounts. Richard Widmann, Head of Web3 Strategy at Google Cloud, explained that as AI agents become economic actors, blockchain infrastructure needs to be as reliable as cloud computing itself.

Conclusion

Zero represents LayerZero's expansion from cross-chain messaging into Layer 1 blockchain infrastructure. The network uses heterogeneous architecture and zero-knowledge proofs to separate transaction execution from verification, claiming performance of 2 million TPS across multiple zones. 

Partnerships with Citadel Securities, DTCC, ICE, and Google Cloud position Zero for potential applications in traditional finance including tokenized securities, 24/7 trading, and settlement workflows. The fall 2026 launch will include three zones covering general-purpose smart contracts, privacy-focused payments, and trading infrastructure. 

Developer adoption and ecosystem growth will determine whether Zero's technical architecture and institutional partnerships translate into sustained network usage and application deployment.

Resources

1. LayerZero on X: Post on Feb. 10

2. Press release by LayerZero: LayerZero Announces Zero Blockchain to Build Global Market Infrastructure In Collaboration with Citadel Securities, The Depository Trust & Clearing Corporation, Intercontinental Exchange; With Strategic Investment in ZRO from Citadel Securities

3. Report by The Block: Citadel and Ark Invest back LayerZero as it launches blockchain, partners with Google Cloud and DTCC

4. Report by CoinDesk: Tether invests in LayerZero Labs as it doubles down on cross-chain tech, agentic finance