Kraken to replace LayerZero with Chainlink to bridge assets across blockchains
Analysis
Price Impact
HighKraken, a major exchange, is migrating a significant amount of assets (over $3 billion in tvl) from layerzero to chainlink ccip. this substantial shift in infrastructure for wrapped assets like kbtc, following a large exploit on layerzero, indicates a strong market reaction to security concerns and a preference for more robust solutions. this could affect the perceived security and efficiency of cross-chain solutions.
Trustworthiness
HighPrice Direction
BullishThe shift to chainlink ccip by a major exchange like kraken, especially following a security incident on a competitor, is a strong bullish signal for chainlink. it demonstrates increasing adoption and trust in its cross-chain interoperability protocol. for btc, as kbtc is a wrapped asset, the migration itself doesn't directly impact the price of btc itself, but it solidifies the infrastructure for managing wrapped btc, which can indirectly support its ecosystem.
Time Effect
LongThis migration represents a fundamental change in how kraken handles cross-chain asset management for its wrapped tokens. the implications for the security and efficiency of these operations will be felt over the long term as the ecosystem adopts chainlink ccip more broadly. the positive sentiment generated for chainlink will also likely have a sustained effect.
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Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Kraken to replace LayerZero with Chainlink to bridge assets across blockchains The decision sees a total of over $3 billion in total value locked migrating after a $292 million LayerZero-powered bridge exploit involving Kelp. By Francisco Rodrigues | Edited by Sheldon Reback May 14, 2026, 3:17 p.m. 2 min read Make preferred on (PiggyBank/ Unsplash) What to know : 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. 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. 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. The move follows similar migrations by platforms including Kelp, Solv and Re. Kelp lost 116,500 rsETH (restaked ether) from a LayerZero-powered bridge in 2026's largest exploit in April. LayerZero later said it “made a mistake” by allowing its own verifier network to secure high-value assets in the configuration used. In total, an estimated $3 billion in total value locked has since migrated. Kraken's migration covers various blockchains including Ink, Ethereum, Unichain and Optimism, with others to follow. Kraken introduced kBTC in 2024 as a 1:1 bitcoin-backed token available first on Ethereum and OP Mainnet. The token now has a $260 million market capitalization, CoinGecko data shows. CCIP will handle the movement of Kraken’s wrapped assets under the Cross-Chain Token standard. Kraken will continue to issue and custody the assets, the firms said. Rival crypto exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens. Kraken’s parent company, Payward, applied this month for a federal trust charter in a bid to become a federal crypto bank. Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO Kraken More For You Turnkey raises $12.5 million in round backed by Circle Ventures and Sequoia Capital By Francisco Rodrigues , AI Boost | Edited by Oliver Knight 2 hours ago The new capital will primarily fund the development and public launch of Turnkey Verifiable Cloud, a secure computing product for digital assets. What to know : Turnkey raised $12.5 million in a strategic round, bringing total funding to over $65M. Key investors include Archetype, Circle Ventures, and Sequoia Capital. The new capital will primarily fund the development and public launch of Turnkey Verifiable Cloud, a secure computing product for digital assets. Turnkey specializes in wallet and... Read full story Latest Crypto News Crypto for Advisors: Stablecoins: finance's new rails 18 minutes ago LIVE: Senate Banking Committee holds key hearing to advance Clarity Act 1 hour ago Why bitcoin’s recent climb to $80,000 might just be a temporary liquidity squeeze 1 hour ago CoinDesk 20 performance update: Bittensor (TAO) rises 1.7%, leading index higher 1 hour ago Turnkey raises $12.5 million in round backed by Circle Ventures and Sequoia Capital 2 hours ago Stablecoin-powered neobank Fasset raises $51 million to expand across emerging markets 2 hours ago Top Stories Cerebras, OpenAI, SpaceX: The IPO pipeline that could drain crypto 4 hours ago Clarity Act amendments would remake key parts of crypto bill but have doubtful future May 13, 2026 Strive’s SATA to become first U.S. listed security to pay daily cash dividends 3 hours ago Solana drops 5%, bitcoin below $80,000 as Xi warns Trump on Taiwan conflict 10 hours ago Bullish misses first-quarter revenue estimates on weaker crypto trading activity 4 hours ago Clarity Act markup leaves bitcoin unstirred 3 hours ago