Ondo logo on the screen of a smartphone. Source: TechGaged / Shutterstock.
FCAT Expands Cross-Chain Security on LayerZero
In Brief
- • FCAT launched an institutional-grade DVN on the LayerZero protocol.
- • LayerZero’s model lets applications choose verifier networks. DVN brings resiliency and institutional alignment.
- • Ondo Finance is the first project to adopt the new DVN.
The Fidelity Center for Applied Technology (FCAT) has deployed an institutional-grade Decentralized Verifier Network (DVN) on the LayerZero omnichain interoperability protocol, enabling more trusted cross-chain message verification for blockchain applications.
The DVN is now active across major networks including Ethereum, Arbitrum, Base, Optimism, Polygon, Avalanche and Solana. With Ondo Finance as the first project to adopt it in production.
Moreover, this development aims to bring familiar operational controls to cross-chain infrastructure in a modular, scalable way that supports both developers and institutional users.
LayerZero’s modular security architecture allows apps to select which independent verifier networks they want to use to validate messages and data.
Therefore, the FCAT DVN adds to that verifier ecosystem by offering a validation service built with institutional reliability in mind.
What it Means for Cross-Chain Messaging
LayerZero’s protocol fundamentally enables omnichain interoperability. Meaning applications can send messages and data across blockchains in a secure and seamless way.
Technically, a message from one chain is passed through a messaging layer and then validated by a DVN before execution on the destination chain.
Traditional cross-chain bridges often rely on a central set of validators that can become chokepoints for security and trust.
In contrast, LayerZero’s architecture allows applications to define their own security stack by choosing one or more DVNs.
As a result, developers get more flexibility over how messages are verified based on risk, cost and performance preferences.
The FCAT DVN offers resilient uptime and infrastructure controls compatible with regulated finance. Still preserving LayerZero’s open, permissionless model.
Furthermore, Ondo Finance’s role as the first integrator highlights real-world adoption of the FCAT DVN. Indeed, Ondo’s products benefit from having a reliable verification layer across networks.
This reduces implicit trust assumptions and aligns verification with formal operational standards, a key consideration for institutional participation in multichain finance.
Bryan Pellegrino, Co-Founder and CEO of LayerZero Labs, said:
“Institutions need tools that match the rigor of traditional finance. FCAT’s DVN shows cross-chain infrastructure can be predictable, auditable, and fully controllable. By embedding verification and compliance directly to the network, FCAT provides a clear blueprint for how institutions can engage safely at scale.”
Implications for Interoperability and Institutional Integration
The launch of FCAT’s DVN reflects a growing emphasis on modular security in cross-chain systems.
Moreover, LayerZero’s framework allows each application to tailor its security profile. Choosing which DVNs to include in its verification stack and how many are required for consensus.
Importantly, this helps balance the trade-off between speed and security in complex multichain environments.
For institutional actors evaluating blockchain infrastructure, having verifiable, auditable, and reliable cross-chain messaging mechanisms aligns with operational requirements in regulated markets.
Therefore, DVN is an example of how institutional practices can be embedded into decentralized protocols without sacrificing openness.
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