Nethermind has officially left its role as a verifier on LayerZero and transitioned to becoming a node operator and strategic technology provider for Chainlink. Through this move, the blockchain infrastructure firm is centering its cross-chain operations on Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Nethermind CEO Daniel Celeda described the transition as a long-term infrastructure decision closely tied to the primary responsibilities of a node operator. The company stated it did not identify any specific security failures in the LayerZero system that triggered the move.
Why Are Projects Shifting Course?
Nethermind’s decision brings the total value of projects publicly migrating from LayerZero to Chainlink to nearly $15 billion in just the last few months. This exodus involves major players in the crypto industry with high capital density. In August, BitGo appointed Chainlink as the exclusive cross-chain service provider for Wrapped Bitcoin (WBTC), which commands a $7.3 billion ecosystem. A month earlier, lending protocol Aave also adopted CCIP as the default system for all cross-chain functions within its application and Stable Vaults.
This shift has extended even to state-managed institutional entities. On August 18, the Wyoming Frontier Stable Token (FRNT) also moved its operations from LayerZero to Chainlink. The step was taken shortly after the Wyoming Stable Token Commission completed its state-level security review. This succession of migrations establishes a new pattern for liquidity managers in vetting cross-chain bridge infrastructure.
The Long Aftermath of the Kelp DAO Case
This pattern of mass migration follows a series of exploit incidents affecting LayerZero users. In April 2026, hackers drained 116,500 rsETH, equivalent to $290 million, from Kelp DAO’s LayerZero-powered bridge. The attacker breached the system using forged cross-chain messages that bypassed security because the protocol only implemented a single-verifier configuration. Following the incident, Kelp DAO immediately migrated its system to Chainlink.
The incident sparked an open debate regarding the boundaries of responsibility between infrastructure creators and their users. LayerZero CEO Bryan Pellegrino asserted that the exploit occurred solely because the client protocol utilized a single verifier - a configuration his company never recommended for production environments. Nethermind declined to confirm whether its internal review was directly triggered by the debate surrounding the Kelp DAO incident.
The Boundaries of Infrastructure Operator Responsibility
This multi-billion-dollar migration redefines the limits of institutional demands on node operators. As institutional capital flows through a single bridge protocol, fund managers require infrastructure with a clear division of responsibility when anomalies occur at the verification layer. For retail users, this series of exoduses highlights one rule of thumb: double-check the intermediary technology underpinning where you deposit your coins, as a vulnerability in a bridging system can wipe out your assets just as quickly as an exploit at the primary protocol level.
Reported from crypto.news.
Also read: What Is DeFi (Decentralized Finance)?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
