Kraken Ditches LayerZero for Chainlink CCIP to Secure kBTC and Future Assets

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Kraken Switches from LayerZero to Chainlink CCIP to Power kBTC

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 is switching its technology for moving assets between different blockchains. They’re moving away from LayerZero and will now use Chainlink’s CCIP to handle these transfers.

Kraken announced on X (formerly Twitter) Thursday that it’s switching from its current system for moving assets between blockchains to Chainlink CCIP. This change will first apply to Kraken Wrapped Bitcoin (kBTC) and will eventually cover all of Kraken’s wrapped assets.

Kraken is phasing out its current system for moving assets between blockchains and switching to Chainlink CCIP as its main solution. This change will initially secure Kraken Wrapped Bitcoin (kBTC) and will be used for all future wrapped assets created by Kraken. Kraken selected Chainlink CCIP due to its reliable, high-quality infrastructure.

— Kraken (@krakenfx) May 14, 2026

Switching to Chainlink CCIP

Kraken will now use Chainlink’s CCIP as its sole system for transferring its assets between different blockchains. Previously, various systems managed these transfers, but now everything will be handled through CCIP.

I just heard from Kraken that they’re rolling out an update that’ll work with several blockchains – Ethereum, Ink, Unichain, and Optimism to start. They’re planning to add even more networks soon, which is great news for anyone who likes to move their crypto around!

The company assured customers who currently hold kBTC that they don’t need to do anything during the transition. They will provide further information gradually through official announcements as the process moves forward. The transfers will be handled by CCIP using Chainlink’s standard for cross-chain tokens, and Kraken will continue to manage and safeguard the assets.

Why Kraken is making the switch

Kraken’s move comes as many in the crypto world worry about the safety of bridges – systems that move assets between different blockchains. A recent hack of Kelp DAO’s bridge in April 2026, where $292 million was stolen, highlighted the risks of older bridge technology and has prompted many projects to re-evaluate their security measures.

Following a recent security issue, several projects – including Kelp, Solv, and Re – have moved their assets. Reports indicate that approximately $3 billion in total value has been transferred to systems built using CCIP.

What is kBTC?

kBTC, created by Kraken in 2024, is a digital token that’s directly backed by real Bitcoin. For every kBTC token, there’s one Bitcoin securely held in storage. It initially launched on the Ethereum and OP Mainnet networks and has since become available on others.

Currently, kBTC is worth around $266 million, according to CoinGecko. It’s primarily used in decentralized finance (DeFi) for activities like lending, trading, and providing liquidity, and it remains fully backed by Bitcoin held securely in custody.

Kraken is improving how it handles wrapped assets, and this ties into its plans to make kBTC available on more blockchain networks. kBTC is currently used on Ethereum, Optimism, Ink, and Unichain, allowing Bitcoin to be used within DeFi platforms for activities like trading and lending.

Kraken will now use Chainlink CCIP to securely manage all of its wrapped assets. Chainlink Labs stated that Kraken determined CCIP met its high standards for security and risk control.

Kraken has completed a review and confirmed that Chainlink CCIP satisfies its high standards for security and risk management. This means Kraken Wrapped Assets now benefit from robust, enterprise-level security when moving between blockchains, supported by a secure foundation and industry certifications like ISO 27001.

— Chainlink (@chainlink) May 14, 2026

As a researcher following the crypto space, I’ve learned that Kraken’s parent company, Payward, is now seeking a federal trust charter. This move appears to be a key part of their strategy to offer fully regulated crypto banking services here in the United States.

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2026-05-14 22:13