Kraken is replacing LayerZero with Chainlink's Cross Chain Interoperability Protocol as its exclusive cross-chain infrastructure for kBTC and future Kraken Wrapped Assets. This marks a major migration toward Chainlink's stack.
The move shifts Kraken’s wrapped asset infrastructure across Ink, Ethereum, Unichain, and Optimism, with more chains expected. Kraken says kBTC customers don't need to take any action.
The decision comes as wrapped assets and bridge infrastructure remain a key security risk in crypto, following April's $292 million Kelp DAO exploit. Protocols including Kelp, Solv, and Re have also accelerated migration to Chainlink CCIP.
Kraken launched kBTC as a wrapped Bitcoin product backed 1:1 by native Bitcoin held at Kraken Financial, its Wyoming-chartered depository institution. The asset makes Bitcoin usable across DeFi while remaining redeemable for BTC through Kraken.
Chainlink CCIP uses independent node operators, native rate limits, and risk controls to reduce exposure to bridge failures. The migration builds on Kraken’s push to expand kBTC across multiple networks.