Kraken Replaces LayerZero With Chainlink CCIP Bridge

TLDR

• Kraken will replace LayerZero with Chainlink CCIP for cross-chain transfers of its wrapped assets.
• The decision follows a $292 million exploit that affected Kelp’s LayerZero-powered bridge in April 2026.
• Chainlink CCIP will become the exclusive bridge service for Kraken’s wrapped tokens including kBTC.
• Kraken will continue to issue and custody the underlying assets under the new setup.
• The migration will cover Ethereum, Optimism, Ink, and Unichain, with more networks planned.

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Kraken will replace LayerZero with Chainlink’s CCIP for cross-chain transfers of wrapped assets. The exchange announced the change after a $292 million bridge exploit hit Kelp last month. Kraken said it will use CCIP as the exclusive cross-chain service for its wrapped tokens.

Kraken Shifts Wrapped Assets to Chainlink Infrastructure

Kraken said it will migrate its wrapped assets from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol. The exchange confirmed that CCIP will become the sole bridge for tokens including kBTC. Kraken stated that it will continue to issue and custody the underlying assets.

The company said CCIP will operate under the Cross-Chain Token standard. Kraken added that the migration will cover Ethereum, Optimism, Ink, and Unichain. The exchange said other supported blockchains will follow in later phases.

Kraken launched kBTC in 2024 as a 1:1 bitcoin-backed token. The token debuted on Ethereum and OP Mainnet. CoinGecko data shows kBTC now holds a $260 million market capitalization.

LayerZero Exploit Prompted Broader Migration

Kraken announced the migration after a $292 million exploit struck Kelp in April 2026. Kelp lost 116,500 rsETH through a LayerZero-powered bridge. The attack marked the largest exploit of 2026.

LayerZero later addressed the incident in a public statement. The company said it “made a mistake” by allowing its own verifier network to secure high-value assets. The configuration used in the exploit enabled the breach.

Following the incident, platforms including Kelp, Solv, and Re shifted to Chainlink CCIP. Reports estimate that about $3 billion in total value locked has migrated. Kraken confirmed that it joined this broader transition.

Chainlink CCIP Becomes Exclusive Bridge Partner

Kraken said CCIP will now handle all cross-chain transfers for its wrapped assets. The exchange described the integration as exclusive. Chainlink confirmed that it will provide infrastructure for token movement across networks.

Rival exchange Coinbase selected Chainlink CCIP last year for its wrapped tokens. Coinbase designated CCIP as the sole bridge for about $7 billion in assets. Kraken now follows a similar structure for its tokens.

Kraken’s parent company, Payward, also filed for a federal trust charter this month. The filing seeks approval to operate as a federal crypto bank. The company submitted the application to U.S. regulators in May 2026.

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