Kraken Shifts $3 Billion in Cross-Chain Infrastructure to Chainlink
Kraken is migrating billions of dollars in wrapped asset infrastructure to Chainlink, replacing LayerZero with Chainlink’s CCIP as the exclusive bridge provider for kBTC and future tokenized assets.
Summary:
- Kraken is replacing LayerZero with Chainlink CCIP for kBTC.
- More than $3 billion in cross-chain liquidity is migrating infrastructure.
- The shift follows the $292 million Kelp DAO exploit in April.
The transition follows mounting industry concerns over bridge security after the $292 million Kelp DAO exploit in April, which exposed vulnerabilities tied to LayerZero-based cross-chain configurations and accelerated a broader institutional flight toward more heavily secured interoperability systems.
🚨KRAKEN MOVES $3 BILLION TO CHAINLINK
Kraken is replacing LayerZero with Chainlink CCIP as the exclusive bridge for kBTC and future wrapped assets.
The move follows a $292M LayerZero-powered Kelp exploit, with over $3B in TVL set to migrate. pic.twitter.com/N57jMqjsuI
— Coin Bureau (@coinbureau) May 14, 2026
Chainlink Becomes Kraken’s Exclusive Bridge Partner
Kraken confirmed that Chainlink’s Cross-Chain Interoperability Protocol, or CCIP, will now serve as the exclusive bridge layer for kBTC and future wrapped assets issued through the exchange.
Under the structure, Kraken will continue managing custody and issuance of the underlying assets, while Chainlink handles cross-chain communication and settlement between blockchain networks.
The initial rollout includes Ethereum, Optimism, Ink – Kraken’s proprietary Layer-2 network – and Unichain, with additional integrations expected later this year.
While kBTC itself currently represents roughly $333 million in total value locked, according to DeFiLlama, the broader migration reflects a wider industry movement away from LayerZero-linked infrastructure. Market data shows more than $3 billion in liquidity has recently shifted toward Chainlink-based systems across multiple protocols.
Kelp DAO Exploit Triggered Industry Reassessment
The migration comes after the April 18 exploit involving Kelp DAO, which resulted in approximately $292 million in losses tied to manipulated cross-chain messaging infrastructure.
Investigators said the attack did not exploit a smart contract vulnerability directly. Instead, attackers allegedly compromised the offchain infrastructure used to verify blockchain state across networks.
According to post-mortem reports, attackers poisoned RPC node data used by LayerZero’s verifier system, allowing fake burn confirmations to trigger the release of legitimate assets on Ethereum.
The affected configuration reportedly relied on a 1-of-1 verification model, meaning a single compromised verifier could authorize transfers without secondary confirmation.
Security researchers linked the attack to infrastructure tactics previously associated with North Korea’s Lazarus Group.
CCIP Gains Institutional Momentum
Kraken cited Chainlink’s multi-layered security architecture as a primary reason for the migration.
Unlike single-verifier systems, CCIP relies on a decentralized network of independent node operators that collectively validate transactions before execution.
READ MORE: CoinGecko Reports 256% Growth in Tokenized Real-World Assets
The protocol also includes a separate Risk Management Network designed to monitor unusual activity and pause cross-chain transfers automatically if suspicious behavior emerges.
The move further strengthens Chainlink’s growing role as critical infrastructure for institutional tokenization and interoperability markets.
Analysts increasingly view CCIP as one of the leading contenders to become the default communication layer between blockchains as tokenized assets expand across multiple networks.
Wrapped Asset Market Continues Consolidating
The decision also reflects broader consolidation trends in the wrapped asset ecosystem as exchanges and asset issuers prioritize security, compliance and standardized interoperability frameworks.
Kraken said users holding kBTC will not need to take any action during the migration process and that assets will remain fully redeemable on a one-to-one basis for underlying Bitcoin reserves.
The transition positions Chainlink as a central infrastructure provider not only for decentralized finance applications, but increasingly for institutional-grade tokenized asset markets as well.
With billions in liquidity now shifting toward CCIP-based systems, the migration may mark one of the largest interoperability realignments since the rise of cross-chain finance began.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
