Kraken to Migrate Wrapped Bitcoin Tech to Chainlink as LayerZero Exodus Expands

Crypto change Kraken is the newest agency to ditch LayerZero’s cross-chain interoperability know-how following its function in final month’s $292 million Kelp DAO exploit.

Consequently, the agency will migrate its present wrapped Bitcoin product, kBTC, to Chainlink’s cross-chain interoperability protocol (CCIP). Sooner or later, any wrapped Kraken merchandise will even make use of Chainlink’s know-how.

“Kraken selected Chainlink CCIP as a result of it presents enterprise-grade infrastructure with strict safety & danger administration necessities,” the exchange posted on X.

Holders of the agency’s kBTC token, which is backed 1:1 by Bitcoin held in custody by Kraken, don’t have to take any motion right now. The token holds a market cap of round $266 million on the time of writing.

Kraken’s migration extends the checklist of main crypto companies which have introduced their intentions to detach themselves from LayerZero’s cross-chain tech after the interoperability protocol workforce admitted it “made a mistake” that led to the Kelp DAO exploit.

Previous to Kraken’s departure, Kelp DAO announced its intentions to shift to Chainlink’s know-how and was adopted by Solv Protocol, which stated it will migrate the tech backing $700 million worth of Bitcoin-related assets to CCIP as effectively. Final week, on-chain reinsurance protocol Re additionally announced plans to make the change from LayerZero to Chainlink.

“Collectively, Chainlink and Kraken may also help speed up the worldwide adoption of crypto by unlocking utility and distribution for all Kraken Wrapped Property throughout DeFi,” Kraken stated.

Though the agency didn’t point out the Kelp DAO exploit, Kraken’s resolution and people of the opposite crypto companies migrating away from LayerZero come after the April 18 exploit that was later attributed to Lazarus Groupthe infamous North Korean state-sponsored hacker group.

Attackers from Lazarus have been capable of drain 116,500 rsETH liquid staking tokens from Kelp DAO’s infrastructure after “poisoning” inner RPCs utilized by LayerZero Labs, in response to a postmortem from the interoperability agency.

Final week, the protocol said no other applications have been impacted and funds will not be in danger.