Lombard Finance is moving more than $1 billion in Bitcoin-backed assets from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol after completing an internal security review following the Kelp DAO exploit.
The protocol said Chainlink CCIP will become its exclusive cross-chain infrastructure for LBTC and BTC.b, two Bitcoin-backed assets used across decentralized finance. Lombard said the decision is part of a wider security upgrade as it expands Bitcoin liquidity across multiple blockchain networks.
The move follows renewed scrutiny of cross-chain bridge systems after the April Kelp DAO exploit, which drained about $292 million from a LayerZero-powered bridge. Since then, several crypto firms and DeFi protocols have moved or started moving assets to Chainlink CCIP. The total migration wave is estimated at $4 billion in assets.
Lombard said CCIP will replace LayerZero across Solana, Etherlink, Berachain, Corn, and TAC. The protocol will also fully deprecate LayerZero usage on Morph and Swell.
Lombard Moves LBTC and BTC.b to Chainlink CCIP
Lombard issues LBTC and BTC.b as Bitcoin-backed assets designed to bring BTC liquidity into DeFi. These assets allow Bitcoin exposure to move across smart contract networks for trading, collateral, and other on-chain use cases.
The protocol said its migration to Chainlink CCIP is intended to protect users while supporting broader distribution of Bitcoin-backed assets. Lombard said it has maintained zero security incidents and 100% uptime since launch and that its cross-chain infrastructure must meet the same standard as the protocol grows.
Lombard co-founder Jacob Phillips said the team reviewed available cross-chain systems after recent bridge security events. He said the review led Lombard to select Chainlink CCIP for securing LBTC and BTC.b.
The migration also includes the adoption of Chainlink’s Cross-Chain Token standard. Lombard said the standard supports a burn-and-mint model that allows a single canonical token to move across chains. The protocol said this reduces external dependencies and avoids vendor lock-in because Lombard keeps ownership of its token contracts.
Kelp DAO Exploit Spurs Wider Bridge Review
The April Kelp DAO exploit increased attention on bridge risk across DeFi. Cross-chain systems handle large pools of value and often serve as key infrastructure for wrapped assets, liquid staking tokens and Bitcoin-backed tokens.
After the exploit, Kelp DAO, Solv Protocol, Re, Kraken and Lombard all moved or announced moves toward Chainlink CCIP. Together, those migrations represent roughly $4 billion in assets, according to industry estimates.
Kraken recently said it would migrate kBTC and future Kraken Wrapped Assets to Chainlink CCIP. Kelp DAO has also restarted rsETH withdrawals, bridging and claims as part of its recovery plan after the exploit.
Chainlink Labs Chief Business Officer Johann Eid said Lombard’s migration is part of a broader move toward cross-chain infrastructure with stronger security controls. He said CCIP is being used by protocols that need reliable infrastructure for institutional adoption and larger Bitcoin-based DeFi markets.
LayerZero remains one of the largest cross-chain messaging providers, but the Kelp exploit has led some protocols to reassess bridge dependencies and risk controls. Lombard’s decision shows how protocols are reviewing infrastructure choices after high-value losses.
Chainlink Security Features Drive Migration
Lombard said Chainlink CCIP offers defense-in-depth architecture, independent node operators, built-in rate limits and audited infrastructure. Chainlink said each bridge lane is secured by at least 16 independent, security-reviewed node operators.
The protocol also pointed to native rate limits that can act as circuit breakers during extreme events. These controls are designed to limit asset movement if abnormal activity is detected.
Lombard also cited Chainlink’s institutional certifications, including SOC 2 Type 2 and ISO/IEC 27001:2022. The protocol said those standards are relevant as Bitcoin-backed assets move into larger DeFi and institutional markets.
The migration gives Lombard the option to add its own Security Consortium as an extra validation layer for cross-chain transfers. Lombard said this lets it enforce its own transfer rules, maintain a record of asset movement and update verification logic when needed.
After the announcement, the LINK price recovered from a bearish shift, trading near $10.31, up 0.89% over 24 hours. The LINK price has recently broken above a longer-term descending trendline and is consolidating between $10.03 and $10.80 as buyers test previous resistance as support.
