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Kraken Moves Wrapped-Asset Bridge to Chainlink CCIP, Dropping LayerZero

The switch reflects a shift to multi-validator security after April’s $292 million Kelp bridge hack.

Overview

  • Kraken, which announced the change Thursday, will deprecate LayerZero and make Chainlink CCIP its sole cross-chain system for kBTC and all future Kraken Wrapped Assets.
  • The migration covers Ethereum, Optimism, Ink, and Unichain at launch, and Kraken says kBTC holders do not need to take any action.
  • Kraken will keep issuing the tokens and holding the backing assets in custody at Kraken Financial, while CCIP handles cross-chain transfers using Chainlink’s Cross-Chain Token standard.
  • Chainlink says CCIP relies on independent node operators, native rate limits, and other risk controls to cut the chance of single-verifier failures, an issue LayerZero acknowledged in Kelp’s setup.
  • The move joins broader shifts by Kelp, Solv, and Re, and follows Coinbase’s earlier consolidation of wrapped-token bridging on CCIP for billions in assets.