Kraken Switches from LayerZero to Chainlink for Cross-Chain Asset Bridging
Kraken to replace LayerZero with Chainlink to bridge assets across blockchains
Coindesk
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Kraken has decided to replace LayerZero with Chainlink's Cross-Chain Interoperability Protocol (CCIP) for bridging assets across blockchains, following a significant exploit that resulted in a $292 million loss. This migration will move over $3 billion in total value locked (TVL) and aligns with similar decisions made by other platforms like Coinbase.
- 01Kraken is replacing LayerZero with Chainlink's CCIP for cross-chain asset transfers.
- 02The switch comes after a $292 million exploit of LayerZero's infrastructure.
- 03Over $3 billion in total value locked will migrate to Chainlink's system.
- 04Kraken's kBTC, a Bitcoin-backed token, will utilize Chainlink's protocol.
- 05Coinbase also adopted Chainlink CCIP last year for its wrapped tokens.
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Kraken has announced it will transition from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP) as its exclusive infrastructure for bridging assets across blockchains. This decision follows a $292 million exploit involving LayerZero that impacted the liquid restaking protocol Kelp, highlighting vulnerabilities in existing cross-chain technologies. As a result, more than $3 billion in total value locked (TVL) will migrate to Chainlink's system. Kraken's kBTC, a wrapped Bitcoin asset, will be among the first to utilize this new protocol, which will also support various blockchains including Ethereum and Optimism. This move aligns Kraken with other platforms like Coinbase, which similarly chose Chainlink CCIP for about $7 billion in wrapped tokens last year. Additionally, Kraken's parent company, Payward, is seeking a federal trust charter to operate as a federal crypto bank, aiming to enhance its services in the digital asset space.
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