Kraken is migrating its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP), citing enterprise-grade security and risk management. The move follows LayerZero's role in the $292 million Kelp DAO exploit in April, which was attributed to North Korea's Lazarus Group.
Holders of kBTC, a token backed 1:1 by Bitcoin held in Kraken custody and carrying a market cap of $266 million, need to take no action. Kraken said all future wrapped assets will also use Chainlink's technology.
Kraken joins Kelp DAO, Solv Protocol, and on-chain reinsurance protocol Re in shifting from LayerZero after the interoperability firm admitted to a mistake that enabled the exploit. Chainlink said its partnership with Kraken will accelerate crypto adoption by unlocking utility for wrapped assets across DeFi.