Kraken said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with the Chainlink equivalent after the $292 million bridging exploit that hit liquid recovery 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 from platforms such as Kelp, Solv and Re. Kelp lost 116,500 rsETH (bought back ether) from a bridge powered by LayerZero in the biggest exploit of 2026 in April. LayerZero later said it “made a mistake” by allowing its own verification network to secure high-value assets in the configuration used. In total, it is estimated that around $3 billion in total value locked has migrated since then.
Kraken’s migration covers several blockchains, including Ink, Ethereum, Unichain, and Optimism, with others to follow. Kraken introduced kBTC in 2024 as a 1:1 bitcoin-backed token available for the first time on Ethereum and OP Mainnet. The token now has a market cap of $260 million, CoinGecko data shows.
CCIP will handle the movement of Kraken’s packaged assets based on the Cross-Chain Token standard. Kraken will continue to issue and custody the assets, the companies said.
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, Payward, filed for federal trust status this month in a bid to become a federal crypto bank.
Read more: Kraken Parent Payward Seeks New Funding at $20B Valuation Ahead of Planned IPO
