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LayerZero’s Troubles Persist as Lombard Shifts $1B to Chainlink

The embattled bridging provider has now lost control over more than $4B amid ongoing fallout from last month's KelpDAO exploit.
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May 15, 2026 • 1 min read

Lombard Finance is migrating over $1B in bitcoin-backed assets to Chainlink's CCIP, compounding on a broader industry retreat from LayerZero following KelpDAO's high-profile exploit last month.

What's the Scoop?

  • Lombard Migration: Bitcoin liquid staking protocol Lombard is migrating more than $1B in assets from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) following "a comprehensive security review" of its cross-chain infrastructure.
  • Mass Upheaval: Lombard joins other major asset issuers including KelpDAO, Solv, and Re in abandoning LayerZero infrastructure for CCIP. Just yesterday, Kraken announced it will adopt CCIP as its exclusive interoperability layer for Kraken Warpped Bitcoin Bitcoin (kBTC). Separately, Kraken's Trydo lending market on Ink chain has already switched all of its price oracles to Chainlink. Altogether, more than $4B of value has migrated to Chainlink-secured solutions since the KelpDAO exploit.

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