The firm cites security concerns after a $292 million exploit last month as it migrates Bitcoin-backed tokens to Chainlink’s platform.
Lombard Finance will replace LayerZero’s technology with Chainlink’s cross-chain interoperability platform for over $1 billion in Bitcoin-linked assets. The decision follows an internal review triggered by the $292 million Kelp DAO exploit in April, which raised security concerns across the sector.
The move aligns with Kraken’s recent shift to Chainlink for its kBTC wrapped Bitcoin token. Lombard’s assets span Solana, Ethereum, and Berachain, and the firm will also discontinue LayerZero use on Morph and Swell networks. The company emphasized its zero-incident security record since inception.
Lombard stated the switch prioritizes user safety and leverages Chainlink’s secure-by-default infrastructure. No immediate market reaction was reported.