[Digital Today reporter Chi-gyu Hwang (황치규)] LayerZero and Kita have entered into a partnership to support moving regulated commercial bank funds on public blockchains.

According to a recent report by The Block, LayerZero said the partnership will combine its omnichain interoperability protocol with Kita’s compliance-built infrastructure. Institutions can move funds for cash management and payments on the Kita network, Ethereum, Solana and Base.

The core of the cooperation is the Kita stablecoin. The Kita stablecoin is an asset created by tokenising bank deposits, and the deposits are actually held through Vipo, a fintech platform that holds a licence to access the U.S. payments network.

Unlike traditional stablecoins that use a mix of reserve assets as collateral, the Kita stablecoin represents actual commercial bank deposits. It allows the issuing institution to fully retain contract authority at every stage through LayerZero’s omnichain fungible token standard.

LayerZero said the Kita stablecoin will be launched by the end of July not only in U.S. dollars but also in euros, Japanese yen, Chinese yuan, British pounds, Canadian dollars, Mexican pesos, UAE dirhams and Hong Kong dollars.