Key Highlights
- Kraken is replacing LayerZero and fully moving its wrapped asset system to Chainlink CCIP.
- The change covers kBTC and future wrapped tokens across multiple blockchains like Ethereum, Optimism, Ink, and Unichain.
- The move is driven by security concerns after Kelp DAO exploits, pushing the industry toward CCIP.
Kraken has announced that it will fully migrate its cross-chain infrastructure to Chainlink’s Cross-Chain Interoperability Protocol (CCIP), replacing its existing provider, LayerZero.
In an X post on Thursday, the platform stated, “Kraken is deprecating its existing cross-chain provider and migrating to Chainlink CCIP as its exclusive cross-chain infra to secure Kraken Wrapped Bitcoin (kBTC) & all future Kraken Wrapped Assets.”
Switching to Chainlink CCIP
The exchange said CCIP will become the only system Kraken uses for moving its wrapped assets between blockchains. This means instead of different systems handling transfers, everything will now go through Chainlink’s CCIP.
Kraken said the update will work across blockchains like Ethereum, Ink, Unichain, and Optimism, with more networks expected later.
The company also confirmed that customers holding kBTC do not need to take any action during the shift. It said it will share more details step by step through official updates as the process continues. In addition, the CCIP will manage the transfers using Chainlink’s Cross-Chain Token standard while Kraken continues to issue and hold custody of the assets.
Why Kraken is making the switch
Kraken’s decision reflects broader concerns about bridge security following several exploits in the DeFi sector. In April 2026, a $292 million exploit involving Kelp DAO’s bridge raised an alarm about security in older systems. The incident alone has pushed many projects to rethink how assets move between chains.
So far, projects like Kelp, Solv, and Re have migrated after the bridge exploit. According to multiple reports, around $3 billion in total value locked has shifted toward CCIP-based systems following recent security concerns in the sector.
What is kBTC?
Kraken’s kBTC, launched in 2024, is a Bitcoin-backed token with a 1:1 peg to real Bitcoin held under custody. It was first made available on Ethereum and OP Mainnet and later expanded to other networks.
Today, kBTC has a market value of about $266 million, based on CoinGecko data. It is mainly used in DeFi for lending, trading, and providing liquidity, while still staying fully backed by Bitcoin held in custody.
Kraken’s wrapped asset infrastructure upgrade is also linked to its broader expansion plan for kBTC across multiple chains. The token is already active across Ethereum, Optimism, Ink, and Unichain, helping bring Bitcoin liquidity into DeFi systems where it can be used for trading and lending.
Chainlink CCIP will now act as the core transport layer for all of Kraken’s wrapped assets. Chainlink Labs also commented on the move, saying: “After review, Kraken found that Chainlink CCIP meets strict security and risk management requirements.”
Meanwhile, Kraken’s parent company, Payward, has recently applied for a federal trust charter as part of its plan to expand into regulated crypto banking services in the United States.
Also Read: Forged Proof, Drained Funds: Hyperbridge Breaks Down April 13 Exploit
