In brief
Kraken will migrate its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink's interoperability protocol.
The asset maintains a market cap of more than $260 million, and Kraken said it will use Chainlink for future wrapped assets, as well.
LayerZero admitted it "made a mistake" with Kelp DAO's setup, which was exploited for $292 million in April.
Crypto exchange Kraken is the latest firm to ditch LayerZero’s cross-chain interoperability technology following its role in last month’s $292 million Kelp DAO exploit. As a result, the firm will migrate its existing wrapped Bitcoin product, kBTC, to Chainlink’s cross-chain interoperability protocol (CCIP). In the future, any wrapped Kraken products will also make use of Chainlink’s technology. “Kraken chose Chainlink CCIP because it offers enterprise-grade infrastructure with strict security & risk management requirements,” the exchange posted on X.Holders of the firm’s kBTC token, which is backed 1:1 by Bitcoin held in custody by Kraken, do not need to take any action at this time. The token holds a market cap of around $266 million at the time of writing.
