Kraken to Replace LayerZero With Chainlink for Cross-Chain Bridges

Cross-chain bridges transfer assets and messages between blockchains, making their verification design critical to token security. Kraken’s wrapped bitcoin, kBTC, initially used LayerZero but is now moving to Chainlink’s Cross-Chain Interoperability Protocol, or CCIP. Kraken has also designated CCIP as the exclusive cross-chain infrastructure for its future wrapped assets, reflecting an industry reassessment of verification risks following a major exploit.

On May 14, 2026, Kraken announced that it would migrate kBTC and future wrapped assets from LayerZero to Chainlink CCIP. The move was prompted by the April 18 exploit of KelpDAO’s rsETH bridge, which resulted in the loss of 116,500 rsETH, worth about $292 million at the time. Projects that have since moved away from LayerZero collectively account for more than $3 billion in total value locked.