Kraken dumps LayerZero for Chainlink CCIP after $292M exploit — $3B in TVL migrating!

Kraken is replacing LayerZero with Chainlink's Cross-Chain Interoperability Protocol (CCIP) as the exclusive cross-chain infrastructure for kBTC and all future wrapped assets. The decision follows the $292 million bridge exploit that hit liquid restaking protocol Kelp last month — the largest DeFi exploit of 2026 — which drained 116,500 rsETH through a LayerZero-powered bridge. LayerZero later acknowledged it "made a mistake" by allowing its own verifier network to secure high-value assets in the configuration used.

The migration covers Ethereum, Ink, Unichain, and Optimism, with more chains to follow. Kraken's kBTC, a 1:1 bitcoin-backed token launched in 2024, currently carries a $260 million market cap per CoinGecko. In total, over $3 billion in TVL has now migrated away from LayerZero across platforms including Kelp, Solv, Re, and now Kraken.

The move cements Chainlink CCIP as the…