BitGo is moving Wrapped Bitcoin (WBTC), the largest tokenized version of Bitcoin with a market capitalization of about $7.4 billion, from LayerZero to Chainlink's Cross-Chain Interoperability Protocol as its exclusive standard for transfers between blockchains. The migration brings the combined value of projects planning to switch from LayerZero to Chainlink close to $15 billion. The decision follows security concerns raised after attackers drained $292 million from KelpDAO's rsETH bridge earlier this year, which used LayerZero infrastructure with a one-of-one Decentralized Verifier Network configuration. BitGo CEO Mike Belshe stated that security comes first and that CCIP provides the controls, reliability and risk management expected by the company's institutional clients. WBTC accounts for about 45% of the wrapped Bitcoin sector's combined market capitalization and was launched in 2019, making it the most established product in the category.
BitGo also plans to use Chainlink CCIP for every asset it issues in the future. That decision extends the agreement beyond WBTC and gives Chainlink a central role in BitGo's expansion across additional blockchain networks. The move follows similar decisions by issuers of other wrapped Bitcoin products. Kraken's kBTC and Solv Protocol's SolvBTC and xSolvBTC have also selected Chainlink for cross-chain transfers in recent months.
KelpDAO Exploit Exposes LayerZero Security Configuration
Attackers drained $292 million from KelpDAO's rsETH bridge earlier this year. The affected bridge used LayerZero infrastructure with a one-of-one Decentralized Verifier Network configuration. Under that setup, one verifier operated by LayerZero Labs could approve cross-chain messages. Attackers compromised off-chain infrastructure supplying information to the verifier, allowing them to submit a false message and remove funds from the bridge.
LayerZero allows projects to choose how many independent verifiers must approve messages. That flexibility can support stronger configurations, but it also allowed some applications to rely on a single verifier. Blockchain data showed that 47% of LayerZero application contracts were using a one-of-one setup. LayerZero has since changed its security framework to prevent similar configurations.
Chainlink says each CCIP bridge is protected by at least 16 independent node operators that have completed security reviews and established records for reliability and uptime. The protocol also provides rate limits and configurable transfer controls intended to restrict losses if abnormal activity occurs.
WBTC Holds 45% Market Share of Wrapped Bitcoin Sector
WBTC was launched in 2019 and remains the largest wrapped Bitcoin token, accounting for about 45% of the sector's combined market capitalization. Wrapped tokens allow Bitcoin-backed value to be used on networks that support decentralized exchanges, lending markets and other blockchain applications.
Coinbase's cbBTC is the second-largest product with a market capitalization of roughly $6 billion. Binance-Peg BTCB ranks third at roughly a fifth of the sector, with the remaining wrapped Bitcoin products far smaller. At its peak, WBTC represented nearly the entire wrapped Bitcoin market and had more than $15 billion in circulation.
WBTC's market value has declined since September 2025 alongside Bitcoin prices, although the number of WBTC tokens in circulation has remained relatively stable. That stability suggests the decline largely reflects Bitcoin's lower dollar value rather than large-scale redemptions.
BitGo retains ownership and control of the WBTC token contracts, giving it authority over the technical migration. WBTC has faced separate scrutiny since BitGo added Justin Sun-linked BiT Global to its custody structure in 2024. Under the arrangement, BiT Global received two of the three keys used in the multisignature system controlling the underlying Bitcoin reserves.
Coinbase later removed WBTC from its platform, citing its listing standards, before introducing cbBTC. BiT Global sued Coinbase over the decision but dropped the case after a judge declined to block the delisting and signalled she would dismiss the suit.
Chainlink CCIP Secures $15 Billion in Cross-Chain Asset Commitments
BitGo's selection gives Chainlink one of the largest cross-chain asset mandates in the market. Nearly $15 billion in token value has now been pledged for migration from LayerZero, based on the current valuations of participating assets.
Chainlink also says CCIP is the only cross-chain protocol with SOC 2 Type 2 and ISO 27001 certifications. Those standards may appeal to custodians and financial institutions that require documented security controls before supporting blockchain infrastructure.
The CCIP migration does not resolve custody concerns related to BiT Global's role because it addresses how WBTC moves between blockchains rather than how the underlying Bitcoin is controlled. It does, however, reduce BitGo's reliance on a cross-chain model that drew greater scrutiny after the KelpDAO attack.
FAQ
What is BitGo doing with WBTC?
BitGo is moving Wrapped Bitcoin (WBTC), which has a market capitalization of about $7.4 billion, from LayerZero to Chainlink's Cross-Chain Interoperability Protocol as its exclusive standard for transfers between blockchains. BitGo also plans to use Chainlink CCIP for every asset it issues in the future.
Why did BitGo switch from LayerZero to Chainlink CCIP?
The decision follows security concerns raised after attackers drained $292 million from KelpDAO's rsETH bridge earlier this year, which used LayerZero infrastructure with a one-of-one Decentralized Verifier Network configuration. BitGo CEO Mike Belshe stated that CCIP provides the controls, reliability and risk management expected by the company's institutional clients. Chainlink says each CCIP bridge is protected by at least 16 independent node operators.
How much market share does WBTC have in the wrapped Bitcoin sector?
WBTC accounts for about 45% of the wrapped Bitcoin sector's combined market capitalization and remains the largest wrapped Bitcoin token. Coinbase's cbBTC is the second-largest product with a market capitalization of roughly $6 billion.
