CoinDesk
Kraken will replace LayerZero with Chainlink's Cross-Chain Interoperability Protocol (CCIP) as the exclusive infrastructure bridging its wrapped crypto assets across blockchains, the exchange said in a statement. The decision follows April's $292 million exploit on a LayerZero-powered bridge that drained 116,500 rsETH from liquid restaking protocol Kelp — 2026's largest exploit — and has triggered an estimated $3 billion in total value locked migrating off LayerZero-based bridges to CCIP.
Chainlink's CCIP will handle the movement of Kraken's wrapped assets including kBTC under the Cross-Chain Token standard, with Kraken continuing to issue and custody the tokens. The migration covers Ink, Ethereum, Unichain and Optimism, with additional chains to follow. kBTC, launched in 2024 as a 1:1 bitcoin-backed token, carries a roughly $260 million market capitalization.
Why it matters
LayerZero acknowledged after the Kelp incident that it "made a mistake" by allowing its own verifier network to secure high-value assets in the configuration used — a rare public admission of architectural fault from a blue-chip cross-chain protocol. Kraken joins Kelp, Solv and Re in migrating off LayerZero, while rival Coinbase selected Chainlink CCIP last year as the sole bridge for roughly $7 billion in wrapped tokens. Two of the largest US-licensed exchanges now anchor their wrapped-asset infrastructure on the same cross-chain stack, concentrating CCIP's gravitational pull.
Market impact
The $3 billion-plus TVL migration validates Chainlink's positioning as institutional-grade cross-chain infrastructure at the exact moment the post-Kelp environment is sorting winners from losers in interoperability. Kraken parent Payward separately applied this month for a federal trust charter, aiming to become a federally chartered crypto bank — meaning CCIP is increasingly the plumbing for regulated US crypto venues, not just DeFi-native protocols.
Frequently asked questions
-
Why is Kraken replacing LayerZero with Chainlink CCIP?
Kraken is migrating after April's $292 million exploit on a LayerZero-powered bridge that drained 116,500 rsETH from liquid restaking protocol Kelp. LayerZero publicly acknowledged it "made a mistake" by letting its own verifier network secure high-value assets in that configuration.
-
How much TVL has migrated off LayerZero since the Kelp exploit?
An estimated $3 billion in total value locked has migrated from LayerZero-based bridges to Chainlink CCIP since April. The migration includes Kraken, Kelp, Solv and Re, with Coinbase having moved roughly $7 billion in wrapped tokens to CCIP last year.
-
Which Kraken assets will Chainlink CCIP bridge?
CCIP becomes the exclusive cross-chain service for Kraken's wrapped assets including kBTC, the exchange's 1:1 bitcoin-backed token with about a $260 million market cap. The migration covers Ink, Ethereum, Unichain and Optimism, with additional chains to follow.
-
What is the Cross-Chain Token standard Kraken will use?
CCIP will move Kraken's wrapped assets under the Cross-Chain Token standard, with Kraken continuing to issue and custody the assets itself. The standard governs how wrapped tokens are represented and transferred across chains.
-
Did Coinbase make a similar move to Chainlink CCIP?
Yes. Coinbase selected Chainlink CCIP last year as the sole bridge for roughly $7 billion in wrapped tokens. Kraken and Coinbase — two of the largest US-licensed exchanges — now anchor their wrapped-asset infrastructure on the same cross-chain stack.
WuBlockchain
WatcherGuru
TheBlock
CryptoSlate
CoinTelegraph
Crypto News