Kraken Switches Bridge Tech After $292M Hack at Another Platform

Kraken, one of the world's largest cryptocurrency exchanges, is making a major security upgrade after a massive $292 million hack at another platform exposed serious risks.

The exchange announced it will replace LayerZero with Chainlink for its "bridge" technology (software that moves cryptocurrency between different blockchains, like moving money between different banks). This change affects over $3 billion worth of assets across the crypto industry.

What triggered this change? In April 2026, a platform called Kelp lost $292 million when hackers exploited their LayerZero-powered bridge. LayerZero later admitted they "made a mistake" in their security setup. This hack was the largest crypto theft of 2026.

Key facts about the switch: • Kraken's wrapped Bitcoin (kBTC) - worth $260 million - will use the new system • The change covers multiple blockchains including Ethereum and Optimism • Rival exchange Coinbase made a similar switch last year for $7 billion in assets • Chainlink's technology (called CCIP) is considered more secure

Why this matters: Bridges are crucial infrastructure in crypto (they let you use Bitcoin on Ethereum's network, for example). When bridges fail, users can lose millions. By switching to Chainlink, Kraken aims to protect its customers from similar hacks.

This move shows how crypto exchanges are prioritizing security after learning from others' costly mistakes. As more money flows through these bridges, choosing the right technology becomes critical for protecting users' funds.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/business/2026/05/14/kraken-to-replace-layerzero-with-chainlink-to-bridge-assets-across-blockchains