Bitcoin DeFi firm Lombard Finance will migrate over $1 billion in assets from LayerZero’s technology to Chainlink’s CCIP platform, citing security priorities. The move follows a recent exploit and mirrors similar decisions by Kraken and others.
Lombard Finance will replace LayerZero technology with Chainlink’s Cross-Chain Interoperability Platform (CCIP) after an internal review of its Bitcoin asset tech stack. The decision comes in the wake of a $292 million exploit affecting Kelp DAO infrastructure last month.
The migration impacts more than $1 billion in Lombard’s Bitcoin-linked assets across Solana, Ethereum, and Berachain. The firm stated this move “prioritizes the safety and security of all Lombard users and reflects our commitment to maintaining the security record we’ve built since day one.” Lombard will also discontinue using LayerZero technology on Ethereum layer-2 network Morph and staking protocol Swell.
Lombard’s assets include Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC), with LBTC alone accounting for $816 million. These tokens enable Bitcoin to be used in decentralized finance protocols across multiple blockchains. In addition to adopting CCIP, Lombard is implementing Chainlink’s Cross-Chain Token (CCT) standard for minting and burning natively cross-chain compatible tokens.
The firm explained that CCIP provides a “secure-by-default foundation” and allows for additional configured security layers, including validation by its own Security Consortium. This shift follows a similar decision by cryptocurrency exchange Kraken to use Chainlink CCIP for its kBTC wrapped Bitcoin token. Multiple other projects, including Solv Protocol, Re, and Kelp DAO, have also migrated away from LayerZero technology since the exploit.
