Kraken has introduced that it’ll exchange LayerZero, a protocol for transferring crypto property between blockchains, with an equal protocol from Chainlink after the $292 million bridge exploit that hit liquid restaking protocol Kelp final month uncovered the dangers of conventional cross-chain infrastructure.
Chainlink's Cross-Chain Interoperability Protocol (CCIP) will turn out to be the unique cross-chain service for Kraken-wrapped cryptoassets, together with Kraken-wrapped Bitcoin, kBTC, the cryptocurrency alternate stated in an announcement.
This migration follows comparable migrations by platforms equivalent to Kelp, Solv, and Re. Kelp misplaced 116,500 rsETH (Re-Staked Ether) from a LayerZero-powered bridge in April's largest exploit of 2026. LayerZero later stated it “made a mistake” to permit its verification community to guard high-value property within the configuration by which it was used. In complete, an estimated complete of $3 billion that was locked up has since been transferred.
Kraken’s migration covers a wide range of blockchains, together with Ink, Ethereum, Unichain, and Optimism, with different blockchains set to observe. Kraken launched kBTC in 2024 as the primary 1:1 Bitcoin-backed token obtainable on Ethereum and OP mainnet. In accordance with information from CoinGecko, the token's market cap presently stands at $260 million.
CCIP handles the motion of Kraken’s wrapped property based mostly on cross-chain token requirements. In accordance with the businesses, Kraken will proceed to difficulty and retailer property.
Rival cryptocurrency alternate Coinbase (COIN) additionally chosen Chainlink CCIP final 12 months as the only bridge for round $7 billion in wrapped tokens.
Kraken's mother or father firm, Payword, utilized for a federal belief constitution this month with the intention of turning into a federal cryptocurrency financial institution.
Learn extra: Kraken mother or father firm Payward seeks new funding at $20 billion valuation forward of deliberate IPO
