VERIFIEDBy Xavier Rivera· ·1.5 min read
Kraken Replaces LayerZero With Chainlink for Cross-Chain Assets
Kraken is replacing LayerZero with Chainlink CCIP as the exclusive cross-chain infrastructure for its wrapped assets including kBTC, triggering the migration of over $3 billion in TVL. The shift follows a $292 million LayerZero-powered exploit on Kelp that exposed risks in legacy cross-chain setups and mirrors moves by other platforms.
Source:CoinDesk
TL;DRAI · 60 sec read
Kraken is replacing LayerZero with Chainlink’s Cross-Chain Interoperability Protocol as the exclusive cross-chain infrastructure for kBTC and future wrapped assets. The decision will see a total of over $3 billion in total value locked migrating after a $292 million LayerZero-powered bridge exploit involving Kelp.
The crypto exchange said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink CCIP after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed risks in legacy cross-chain infrastructure. Chainlink CCIP will become the exclusive cross-chain service for Kraken's wrapped crypto assets including kBTC, its wrapped bitcoin.
The crypto exchange said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink CCIP after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed risks in legacy cross-chain infrastructure. Chainlink CCIP will become the exclusive cross-chain service for Kraken's wrapped crypto assets including kBTC, its wrapped bitcoin.
POST FROM @krakenfx· official announcement tweet from Kraken matching the article's exact story on migrating to Chainlink CCIP
https://x.com/krakenfx/status/2054941472512717301
This move follows similar migrations by platforms including Kelp, Solv and Re. Kelp lost 116,500 rsETH 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.
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 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.
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.
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 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.
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