Kraken to replace LayerZero with Chainlink to bridge assets across blockchains

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Kraken to replace LayerZero with Chainlink to bridge assets across blockchains The decision sees a total of over $3 billion in total value locked migrating after a $292 million LayerZero-powered bridge exploit involving Kelp. What to know: - Kraken is replacing LayerZero with Chainlink CCIP as the exclusive cross-chain infrastructure for kBTC and future wrapped assets. - This sees a total of over $3 billion in TVL migrating after a $292 million LayerZero-powered bridge exploit involving Kelp. - Rival crypto exchange Coinbase also selected Chainlink CCIP as the sole bridge for about $7 billion in wrapped tokens last year. Kraken said it will replace LayerZero, a protocol for moving crypto assets across blockchains, with Chainlink’s equivalent after the $292 million bridge exploit that hit liquid restaking protocol Kelp last month exposed risks in legacy cross-chain infrastructure. Chainlink's Cross-Chain Interoperability Protocol (CCIP) will become the exclusive cross-chain service for Kraken's wrapped crypto assets including kBTC, its wrapped bitcoin, the crypto exchange said in a statement. The move follows similar migrations by platforms including Kelp, Solv and Re. Kelp lost 116,500 rsETH (restaked ether) from a LayerZero-powered bridge in 2026's largest exploit in April. LayerZero later said it “made a mistake” by allowing its own verifier network to secure high-value assets in the configuration used. In total, an estimated $3 billion in total value locked has since migrated. Kraken's migration covers various blockchains including Ink, Ethereum, Unichain and Optimism, with others to follow. Kraken introduced kBTC in 2024 as a 1:1 bitcoin-backed token available first on Ethereum and OP Mainnet. The token now has a $260 million market capitalization, CoinGecko data shows. CCIP will handle the movement of Kraken’s wrapped assets under the Cross-Chain Token standard. Kraken will continue to issue and custody the assets, the firms said. Rival crypto exchange Coinbase (COIN) also selected Chainlink CCIP last year as the sole bridge for about $7 billion in wrapped tokens. Kraken’s parent company, Payward, applied this month for a federal trust charter in a bid to become a federal crypto bank. Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO More For You The new capital will primarily fund the development and public launch of Turnkey Verifiable Cloud, a secure computing product for digital assets. What to know: - Turnkey raised $12.5 million in a strategic round, bringing total funding to over $65M. Key investors include Archetype, Circle Ventures, and Sequoia Capital. - The new capital will primarily fund the development and public launch of Turnkey Verifiable Cloud, a secure computing product for digital assets. - Turnkey specializes in wallet and...

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