Andreessen Horowitz (a16z) has reinforced its commitment to LayerZero, a Web3 cross-chain messaging protocol, with a $55 million investment in LayerZero tokens (ZRO) as of April 17, 2025. According to a16z general partner Ali Yahya, the investment involves a three-year lock-up period for the acquired ZRO tokens. This move follows a16z's previous investments in LayerZero, including an initial investment in March 2022 and participation in the Series B funding round in April 2023.
LayerZero, which was valued at $3 billion during its Series B funding round with participation from firms like Circle Ventures and Sequoia Capital, enables seamless information sharing across blockchains. In January 2025, LayerZero settled with the FTX Estate regarding allegations of exploiting the exchange's liquidity crisis. The company launched its own token, ZRO, in June 2024.
Cross-chain messaging protocols like LayerZero are crucial for decentralized applications (DApps) and traders seeking seamless swaps across blockchains. Competitors in this space include Wormhole, which raised $225 million in November 2023, and Chainlink, which offers cross-chain interoperability. More companies are adopting an omnichain approach, with Phantom and Magic Eden expanding support to multiple blockchains.