Kraken to replace LayerZero with Chainlink to bridge assets across blockchains
Kraken mentioned it can substitute LayerZero, a protocol for shifting crypto property throughout blockchains, with Chainlink’s equal after the $292 million bridge exploit that hit liquid restaking protocol Kelp final month uncovered dangers in legacy cross-chain infrastructure.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will turn out to be the unique cross-chain service for Kraken’s wrapped crypto property together with kBTC, its wrapped bitcoin, the crypto change mentioned in an announcement.
The transfer follows comparable migrations by platforms together with Kelp, Solv and Re. Kelp misplaced 116,500 rsETH (restaked ether) from a LayerZero-powered bridge in 2026’s largest exploit in April. LayerZero later mentioned it “made a mistake” by permitting its personal verifier community to safe high-value property within the configuration used. In whole, an estimated $3 billion in whole worth locked has since migrated.
Kraken’s migration covers numerous blockchains together with Ink, Ethereum, Unichain and Optimism, with others to observe. Kraken launched kBTC in 2024 as a 1:1 bitcoin-backed token accessible first on Ethereum and OP Mainnet. The token now has a $260 million market capitalization, CoinGecko information reveals.
CCIP will deal with the motion of Kraken’s wrapped property below the Cross-Chain Token customary. Kraken will proceed to difficulty and custody the property, the corporations mentioned.
Rival crypto change Coinbase (COIN) additionally chosen Chainlink CCIP final 12 months as the only real bridge for about $7 billion in wrapped tokens.
Kraken’s dad or mum firm, Payward, utilized this month for a federal belief constitution in a bid to turn out to be a federal crypto financial institution.
Learn extra: Kraken dad or mum Payward seeks contemporary funding at $20 billion valuation forward of deliberate IPO
