Deutsche Telekom MMS will run infrastructure to help secure blockchain transactions.
LayerZero, a protocol that enables applications to move data and assets across blockchains, announced yesterday, May 22, that Deutsche Telekom MMS has joined the ecosystem as a decentralized verification network (DVN).
The partnership aims to improve the security of cross-chain transactions for institutional clients such as banks, exchanges, and stablecoin issuers, according to a press release viewed by The Defiant. Deutsche Telekom MMS, a subsidiary of one of the world’s largest telecom firms, Deutsche Telekom, will operate the DVN using its Open Telekom Cloud (OTC), which works across data centers in Europe.
LayerZero currently facilitates over 70% of all cross-chain messaging traffic in web3 and supports top networks including Ethereum, Solana, Arbitrum, Avalanche, and Mantle, per the release. The protocol is valued at approximately $3 billion and backed by a16z Crypto, Sequoia Capital, and OpenSea Ventures, among others.
“Deutsche Telekom MMS strengthens our ecosystem by bringing enterprise-grade security, compliance, and scalability,” said Bryan Pellegrino, CEO and co-founder at LayerZero.
“Their infrastructure and commitment to sustainability make them the ideal partner in advancing cross-chain transaction reliability, accelerating blockchain adoption, and supporting institutional clients in the evolving digital economy.”
The OTC infrastructure complies with European regulatory standards, including GDPR, and is powered entirely by renewable energy, according to the release.
“Our collaboration with LayerZero enables institutional clients to benefit from smooth, inter-chain transactions supported by robust security and sustainable practices,” said Eugenio Carlon, who leads digital trust and cybersecurity at Deutsche Telekom MMS. Carlon added:
“This development represents a significant step in the institutional adoption of Web3, underscoring the critical importance of decentralized blockchains in providing reliability, especially in the financial sector.”
Since the news went live LayerZero’s native token ZRO has rallied by 2% and is currently trading at $2.66 with a market capitalization of $296 million, according to CoinGecko.
LayerZero is not the first web3 integration for Deutsche Telekom MMS, which has operated blockchain infrastructure since 2020. In February, the telecoms company became a validator for RWA-focused blockchain Injective. A few months prior, the Deutsche Telekom subsidiary also began operating a validator in the NEAR Protocol, while in May 2023, Polygon onboarded the firm as a validator as well.
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