Kraken will replace LayerZero with Chainlink's Cross-Chain Interoperability Protocol (CCIP) for bridging assets across blockchains after a $292 million exploit exposed risks in LayerZero's infrastructure. This change will affect Kraken's wrapped crypto assets, including kBTC.
Mentioned in this story
Kraken said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink’s equivalent after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed risks in legacy cross-chain infrastructure.
Chainlink's Cross-Chain Interoperability Protocol (CCIP) will become the exclusive cross-chain service for Kraken's wrapped crypto assets including kBTC, its wrapped bitcoin, the crypto exchange said in a statement.
The move follows similar migrations by platforms including Kelp, Solv and Re. Kelp lost 116,500 rsETH (restaked ether) from a LayerZero-powered bridge in 2026's largest exploit in April. LayerZero later said it “made a mistake” by allowing its own verifier network to secure high-value assets in the configuration used. In total, an estimated $3 billion in total value locked has since migrated.
Kraken's migration covers various blockchains including Ink, Ethereum, Unichain and Optimism, with others to follow. Kraken introduced kBTC in 2024 as a 1:1 bitcoin-backed token available first on Ethereum and OP Mainnet. The token now has a $260 million market capitalization, CoinGecko data shows.
CCIP will handle the movement of Kraken’s wrapped assets under the Cross-Chain Token standard. Kraken will continue to issue and custody the assets, the firms said.
Rival crypto exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens.
Kraken’s parent company, Payward, applied this month for a federal trust charter in a bid to become a federal crypto bank.
Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO
Kraken switched to Chainlink due to security concerns highlighted by a $292 million exploit involving LayerZero, which exposed risks in cross-chain infrastructure.
CCIP is Chainlink's solution for securely moving crypto assets across different blockchains, which Kraken will now use for its wrapped assets.
Kraken will manage various wrapped assets, including kBTC, its wrapped bitcoin, using Chainlink's CCIP for cross-chain transactions.
The crypto market structure bill has advanced from the Senate Banking Committee, marking a significant step towards a floor vote. Bipartisan support has emerged, but unresolved issues remain that could affect Democratic backing.
Strategy plans to repurchase $1.5 billion in convertible debt and may sell Bitcoin to fund it.
Analyst Tice says Ethereum's rise to $4,000 is imminent, citing strong technicals.
Discover Myriad: A New Platform for Prediction Markets
Bitcoin struggles below $79K as inflation fears outweigh CLARITY Act progress.
Payward, Kraken's parent company, cuts 150 jobs as it prepares for an IPO.
See every story in Crypto — including breaking news and analysis.