Kraken announced it is switching its wrapped Bitcoin token kBTC to Chainlink's Cross-Chain Interoperability Protocol. The move follows the KelpDAO exploit that resulted in a $292 million loss and heightened concerns over bridge security in DeFi. The exchange will make CCIP the exclusive cross-chain infrastructure for kBTC and future wrapped assets.
Kraken is deprecating its prior cross-chain provider and routing kBTC through Chainlink CCIP. The 1:1 Bitcoin-backed token allows BTC to operate on networks including Ethereum, Unichain, OP Mainnet, and Ink, with reserves held at Kraken Financial, a Wyoming-chartered depository institution.
