Lombard shifts $1B in Bitcoin assets to Chainlink CCIP
Lombard Finance will replace LayerZero with Chainlink CCIP for over $1 billion in Bitcoin-backed tokens after an internal review following the $292 million Kelp DAO exploit.
Lombard Finance announced on May 15 it will replace LayerZero infrastructure with Chainlink’s cross-chain interoperability platform (CCIP) for more than $1 billion in Bitcoin-linked assets after an internal review prompted by last month’s $292 million Kelp DAO exploit.
The firm’s Bitcoin products, Lombard BTC (BTC.B) and Lombard Staked BTC (LBTC), together exceed $1 billion in market value. LBTC represents roughly $816 million and functions as a liquid staking token that is 1:1 backed by Bitcoin. These tokens are present on Solana, Ethereum and Berachain. Lombard also plans to stop using LayerZero on the Ethereum layer-2 network Morph and the staking protocol Swell.
Lombard will adopt Chainlink’s Cross-Chain Token (CCT) standard to mint and burn tokens with native cross-chain compatibility. The company said CCIP allows additional security layers to be configured on top and intends to have its Security Consortium validate cross-chain transactions as an extra attestation.
LayerZero acknowledged in a postmortem that an internal configuration error created an unrecognized risk after attackers poisoned internal RPC endpoints tied to Kelp DAO infrastructure. That incident enabled attackers to withdraw about $292 million. Several projects have migrated away from LayerZero since the exploit. Crypto exchange Kraken announced adoption of Chainlink CCIP for its kBTC wrapped Bitcoin token the day before Lombard’s announcement.
Lombard posted on X: “This decision prioritizes the safety and security of all Lombard users and reflects our commitment to maintaining the security record we’ve built since day one, zero security incidents and 100% uptime.” The firm added it will continue operating as it transitions systems and token standards to preserve uptime and reduce security risk.
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