More Than $4B Shifts From LayerZero to Chainlink CCIP as Cross-Chain Security Fears Grow

Cross-chain infrastructure security has returned to the spotlight after the KelpDAO incident, with multiple protocols reportedly moving off LayerZero and adopting Chainlink's Cross-Chain Interoperability Protocol (CCIP). Recent industry data shows roughly $4 billion in assets have either already migrated, or are currently migrating, from LayerZero to CCIP. Attention on cross-chain risk has intensified since the May 16 KelpDAO attack, which resulted in reported losses of $292 million. DeFi protocol Lombard is the latest project to join the shift. The team said it completed an internal security review, discontinued its use of LayerZero, and migrated more than $1 billion in Bitcoin-backed assets to Chainlink CCIP. Lombard said it plans to issue two Bitcoin-backed tokens, LBTC and BTC.b, and will prioritize transfers to Solana, Etherlink, Berachain, Corn, and TAC. The protocol added it will fully end LayerZero usage on Morph and Swell. The company said its decision to use Chainlink CCIP was driven by security considerations including independent node operators, an internal rate-capping mechanism, and audited infrastructure. Lombard will also adopt Chainlink's cross-chain token standard and support transfers using a "burn and mint" model. Kelp DAO, Solv Protocol, Re, and crypto exchange Kraken have previously completed similar transitions. Together, these moves are reported to account for about $4 billion in assets. Chainlink Labs Director of Business Development Johann Eid commented, "We are witnessing an ongoing wave of safe-haven migration in the industry." This is not investment advice.