Kraken has announced that it will replace LayerZero, a protocol for moving crypto assets between blockchains, with an equivalent protocol from Chainlink after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed the risks of traditional cross-chain infrastructure.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will become the exclusive cross-chain service for Kraken’s wrapped crypto assets, including Kraken’s wrapped Bitcoin, kBTC, the cryptocurrency exchange said in a statement.
This migration follows similar migrations by platforms such as Kelp, Solv, and Re. Kelp lost 116,500 rsETH (Re-Staked Ether) from a LayerZero-powered bridge in April’s biggest exploit of 2026. LayerZero later said it “made a mistake” to allow its verification network to protect high-value assets in the configuration in which it was used. In total, an estimated total of $3 billion that was locked up has since been transferred.
Kraken’s migration covers a variety of blockchains, including Ink, Ethereum, Unichain, and Optimism, with other blockchains set to follow. Kraken introduced kBTC in 2024 as the first 1:1 Bitcoin-backed token available on Ethereum and OP mainnet. According to data from CoinGecko, the token’s market cap currently stands at $260 million.
CCIP handles the movement of Kraken’s wrapped assets based on cross-chain token standards. According to the companies, Kraken will continue to issue and store assets.
Rival cryptocurrency exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for around $7 billion in wrapped tokens.
Kraken’s parent company, Payword, applied for a federal trust charter this month with the aim of becoming a federal cryptocurrency bank.
Read more: Kraken parent company Payward seeks new funding at $20 billion valuation ahead of planned IPO
