Aave

kBTC

LayerZero

Drops

Chainlink

Kraken named Chainlink<a href="https://yellow.com/asset/link" rel="noopener noreferrer nofollow">(LINK)</a> CCIP the exclusive cross-chain layer for kBTC and future wrapped assets, retiring <a href="https://yellow.com/news/kelp-lazarus-exploit-layerzero" rel="noopener noreferrer nofollow">LayerZero after a $292M exploit</a>.
<h2 id="kraken-drops-layerzero-for-chainlink-ccip">Kraken Drops LayerZero For Chainlink CCIP</h2>
Kraken will route kBTC and every future wrapped asset through Chainlink's Cross-Chain Interoperability Protocol, the exchange <a href="https://decrypt.co/367880/kraken-migrate-wrapped-bitcoin-chainlink-layerzero-exodus" rel="noopener noreferrer nofollow">confirmed</a> this week.
The switch covers Ethereum<a href="https://yellow.com/asset/eth" rel="noopener noreferrer nofollow">(ETH)</a>, Ink, Unichain, and Optimism<a href="https://yellow.com/asset/op" rel="noopener noreferrer nofollow">(OP)</a> in its first phase, with additional chains queued for later stages.
The exchange <a href="https://www.coindesk.com/business/2026/05/14/kraken-to-replace-layerzero-with-chainlink-to-bridge-assets-across-blockchains" rel="noopener noreferrer nofollow">cited</a> 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<a href="https://yellow.com/asset/btc" rel="noopener noreferrer nofollow">(BTC)</a> 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.
Also Read:<a href="https://yellow.com/news/xrp-etfs-record-139b-token-loses-bnb" rel="noopener noreferrer nofollow">XRP ETFs Hit Record $1.39B But Token Loses 4th Spot To BNB</a>
<h2 id="kelp-dao-exploit-reshapes-bridge-risk">Kelp DAO Exploit Reshapes Bridge Risk</h2>
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 <a href="https://blockonomi.com/kraken-migrates-kbtc-to-chainlink-ccip-as-layerzero-exodus-grows" rel="noopener noreferrer nofollow">attributed</a> 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."
<h2 id="chainlink-builds-wrapped-asset-network-effect">Chainlink Builds Wrapped-Asset Network Effect</h2>
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.
<a href="https://yellow.com/news/can-chainlink-push-through-the-dollar960-resistance-zone" rel="noopener noreferrer nofollow">LINK price action</a> 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.
Read Next:<a href="https://yellow.com/news/hyperliquid-rejects-manipulation-claims-hype-drops" rel="noopener noreferrer nofollow">Hyperliquid Rejects Wall Street's Manipulation Claims As HYPE Drops 14%</a>

Kraken Drops LayerZero, Picks Chainlink CCIP After $292M Bridge Exploit

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Other articles published on May 17, 2026

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