Kraken Switches to Chainlink CCIP for Stronger Security
Kraken has officially moved away from LayerZero. The US-based crypto exchange now uses Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This change follows the major Kelp DAO exploit in April.
The platform made this switch to better protect Kraken Wrapped Bitcoin (kBTC) and all future wrapped tokens. Kraken chose Chainlink CCIP because it delivers strict security, enterprise-grade infrastructure, and robust risk management.
Several other protocols have also shifted to Chainlink after the exploit. Kelp DAO migrated its rsETH staking token to the Chainlink platform. Solv Protocol moved $700 million in tokenised Bitcoin, while Re shifted $475 million in total value locked. As a result, more than $3 billion in TVL has moved to CCIP since April.
LayerZero accepted responsibility for the Kelp DAO incident. The protocol admitted that its internal systems faced attacks, but it also highlighted issues in Kelp’s single-DVN configuration. Many projects now view Chainlink’s defence-in-depth model as the new industry standard for cross-chain transfers.
Chainlink’s native token LINK currently trades near $10. It remains down significantly from its 2021 peak. Meanwhile, LayerZero’s token ZRO has dropped 30% since the April hack and stays more than 80% below its 2024 high.
This growing migration shows increasing focus on security and reliability in the crypto space. Exchanges and protocols continue to strengthen their cross-chain infrastructure. Kraken’s move further boosts confidence in Chainlink’s technology for safer blockchain interoperability.
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