Kraken announced it would replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink’s equivalent after the $292 million bridging exploit that hit liquid dining protocol Kelp last month exposed risks to existing 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 (reconstituted ether) from a LayerZero-powered bridge in the largest 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 it used. In total, a total value blocked estimated at $3 billion has since migrated.
Kraken’s migration covers various blockchains including Ink, Ethereum, Unichain and Optimism, with more 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 market capitalization of $260 million, according to CoinGecko data.
CCIP will manage the movement of Kraken wrapped assets according to the Cross-Chain Token standard. Kraken will continue to issue and maintain the assets, the companies said.
Rival crypto exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for approximately $7 billion in wrapped tokens.
Kraken’s parent company, Payward, applied for a federal trust charter this month with the goal of becoming a federal crypto bank.
Read more: Kraken parent Payward seeks $20 billion in new funding ahead of planned IPO
