Kraken named Chainlink (LINK) CCIP the exclusive cross-chain layer for kBTC and future wrapped assets, retiring LayerZero after a $292M exploit.
Kraken Drops LayerZero For Chainlink CCIP
Kraken will route kBTC and every future wrapped asset through Chainlink's Cross-Chain Interoperability Protocol, the exchange confirmed this week.
The switch covers Ethereum (ETH), Ink, Unichain, and Optimism (OP) in its first phase, with additional chains queued for later stages.
The exchange cited ISO 27001 and SOC 2 Type 2 certifications, 16 independent node operators, and native rate limits as the reasons it picked CCIP over the prior LayerZero setup.
kBTC, backed one-to-one by Bitcoin (BTC) held in Kraken custody, carries a market capitalization near $266 million. Holders do not need to take any action during the migration, the exchange said.
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Kelp DAO Exploit Reshapes Bridge Risk
The decision lands roughly one month after the April 18 Kelp DAO breach drained 116,500 rsETH from a LayerZero-powered bridge, a hit later attributed to North Korea's Lazarus Group.
LayerZero acknowledged it "made a mistake" in the configuration that secured those assets, and the admission has accelerated a wave of departures across DeFi. Kelp DAO, Solv Protocol, and on-chain reinsurance protocol Re have all announced parallel moves to Chainlink, with Solv shifting roughly $700 million in Bitcoin-related assets alone.
Johann Eid, Chief Business Officer at Chainlink Labs, said Kraken's migration "reflects growing institutional demand for cross-chain systems capable of meeting enterprise-level security requirements."
Chainlink Builds Wrapped-Asset Network Effect
Chainlink oracles already secure roughly 70% of the DeFi oracle market and more than 80% on Ethereum, with CCIP integrated across Aave and Lido. Coinbase picked the same protocol as the exclusive bridge for about $7 billion in wrapped assets in 2025, and Kraken's move extends that pattern into crypto-native exchange infrastructure.
LINK price action has lagged the broader rally for much of May, trading well below its 2024 highs even as institutional wins have stacked up. The token has held a narrow range through the spring, with analysts noting that infrastructure wins typically show up in fees and integrations long before price catches up.
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