Kraken has announced it will migrate its wrapped Bitcoin product, kBTC, from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP). The decision follows a $292 million exploit of Kelp DAO in April, which LayerZero acknowledged was partly due to a mistake in the Kelp DAO setup. Kraken stated that Chainlink's CCIP offers enterprise-grade infrastructure with strict security and risk management requirements. The exchange will also use Chainlink for all future wrapped assets. kBTC, backed 1:1 by Bitcoin held in Kraken custody, has a market cap of approximately $266 million and holders need not take any action. Kraken joins other major firms like Kelp DAO, Solv Protocol, and Re in migrating away from LayerZero after the incident, which was attributed to North Korea's Lazarus Group. LayerZero's postmortem revealed that attackers poisoned internal RPCs to drain 116,500 rsETH tokens.

Key facts

• Kraken migrates wrapped Bitcoin kBTC from LayerZero to Chainlink CCIP.
• Migration follows $292M Kelp DAO exploit; LayerZero admitted a mistake.
• All future Kraken wrapped assets will use Chainlink's protocol.
• kBTC market cap ~$266M; holders need no action.
• Other firms like Kelp DAO, Solv Protocol, and Re also migrating.

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