Kraken said it will replace LayerZero, a protocol for moving cryptoassets across blockchains, with Chainlink’s equivalent after the $292 million bridge exploit that hit liquid replay protocol Kelp last month exposed risks in legacy cross-chain infrastructure.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will be the exclusive cross-chain service for Kraken’s wrapped cryptoassets, 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 (reclaimed ether) from a LayerZero-powered bridge in 2026’s biggest exploit in April. LayerZero later said it “made a mistake” by allowing its own verification network to secure valuable assets in the deployed configuration. In total, an estimated $3 billion in aggregate value has been locked up since migrating.
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 that was first available 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 wrapped assets under the Cross-Chain Token standard. Kraken will continue to issue and hold the assets, the firms said.
Rival crypto exchange Coinbase (COIN) also chose Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens.
Kraken’s parent company, Payward, filed for a federal trust charter this month in an effort to become a federal crypto bank.
Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO
