finance
Kraken to Replace LayerZero With Chainlink for Cross-Chain Asset Transfers
Kraken announced it will use Chainlink's Cross-Chain Interoperability Protocol as the exclusive bridge for its wrapped assets including kBTC. The change affects more than $3 billion in total value locked following a $292 million exploit on a LayerZero-powered bridge last month. Coinbase made a similar switch last year for about $7 billion in wrapped tokens.
May 14, 11:17 AM·1m read1 source
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Kraken will replace LayerZero with Chainlink's Cross-Chain Interoperability Protocol as the exclusive infrastructure for moving its wrapped crypto assets across blockchains. The decision affects more than $3 billion in total value locked that has migrated since a $292 million exploit occurred on a LayerZero-powered bridge last month.
Chainlink CCIP will handle transfers for kBTC, Kraken's wrapped bitcoin, and future wrapped assets under the Cross-Chain Token standard. The crypto exchange will continue to issue and custody the assets.
A liquid restaking protocol lost 116,500 rsETH through a LayerZero-powered bridge in April, an event described as the largest exploit of 2026 so far. LayerZero later said it made a mistake by allowing its own verifier network to secure high-value assets in the configuration that was used.
An estimated $3 billion in total value locked has migrated from LayerZero since then. Kraken's migration covers blockchains including Ink, Ethereum, Unichain and Optimism, with additional networks to follow. The exchange introduced kBTC in 2024 as a 1:1 bitcoin-backed token initially available on Ethereum and OP Mainnet.
The token currently has a market capitalization of $260 million.
Platforms including Solv and Re have also migrated from LayerZero following the exploit. Coinbase selected Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens. Kraken's parent company, Payward, applied this month for a federal trust charter in a bid to become a federal crypto bank. The company did not link the bridge decision to its regulatory application.
