The list of protocols leaving LayerZero infrastructure is growing longer. Crypto custodian firm BitGo has just announced a change in the cross-chain service provider for its flagship token, Wrapped Bitcoin (WBTC). BitGo is withdrawing this asset from LayerZero and making Chainlink its exclusive infrastructure provider.
BitGo’s move adds significant weight to the exodus of funds, making it far more massive. With the inclusion of WBTC in the list, the total overall value of protocols announcing migrations from LayerZero to Chainlink has now climbed close to $14.5 to $15 billion.
The Aftermath of the $292 Million Incident
This wave of value migration has a clear starting point. The defection trend began after a LayerZero-powered bridge used by Kelp DAO suffered an exploit, resulting in a loss of $292 million in early 2026. Since the security incident broke, a succession of major industry projects have started packing up their assets and choosing to jump ship.
Before BitGo also joined the exodus, the list of new users adopting the Chainlink CCIP protocol was already filled with major names. Mantle, Kelp, Lombard, Solv Protocol, Virtuals, Re, and the crypto exchange Kraken chose a similar path to secure their cross-network movement flows.
WBTC plays a crucial role in the crypto market. As a tokenized representation of Bitcoin, this token acts as a primary bridge allowing Bitcoin liquidity to be used in various decentralized finance (DeFi) products outside its native blockchain. In 2024, BitGo partnered with LayerZero to expand WBTC’s market reach to the Avalanche and BNB Chain networks. That partnership has now been officially terminated.
Who Holds Control
Under the new partnership structure, BitGo will standardize future WBTC deployments using Chainlink’s Cross-Chain Token standard. BitGo has also designated CCIP as the default system for any new assets they may issue in the future.
Despite relying on third-party infrastructure, BitGo stated that it retains full control over its vital operations. The company ensures that control of the token contracts remains in its hands. BitGo reserves the right to set transaction rate limits, while also controlling token transfers between each blockchain to maintain user security.
On the ground, this implementation has begun gradually. Chainlink CCIP has reportedly registered WBTC liquidity pools on the Ethereum network and the gaming-specific Ronin chain.
As of this announcement, there is no set timeline for when this full WBTC migration will be fully completed. BitGo’s departure serves as a clear signal: trust in the cross-chain space evaporates quickly once a hack occurs, and the impact can drain billions of dollars from one protocol to its competitor.
Reported from CoinDesk.
Read also: 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.