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Kraken to replace LayerZero with Chainlink to bridge assets across blockchains
Compiled by KHAO Editorial — aggregated from 3 sources. See llms.txt for citation guidance.
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Kraken said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink’s equivalent after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed risks in legacy cross-chain infrastructure.
Key facts
- Kraken introduced kBTC in 2024 as a 1:1 bitcoin-backed token available first on Ethereum and OP Mainnet
- Rival crypto exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens
- Kelp lost 116,500 rsETH (restaked ether) from a LayerZero-powered bridge in 2026's largest exploit in April
- Kraken said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink’s equivalent after the $292 million bridge exploit that hit liquid restaking protocol
Summary
Kraken is replacing LayerZero with Chainlink CCIP as the exclusive cross-chain infrastructure for kBTC and future wrapped assets. This sees a total of over $3 billion in TVL migrating after a $292 million LayerZero-powered bridge exploit involving Kelp. Rival crypto exchange Coinbase also selected Chainlink CCIP as the sole bridge for about $7 billion in wrapped tokens last year. Chainlink's Cross-Chain Interoperability Protocol (CCIP) will become the exclusive cross-chain service for Kraken's wrapped crypto assets including kBTC, its wrapped bitcoin, the crypto exchange said in a statement.