Nethermind Switches Cross-Chain Role from LayerZero to Chainlink

3 hour ago 3 sources positive

Key takeaways:

  • Nethermind's shift signals a structural migration toward Chainlink's security-first cross-chain architecture.
  • LayerZero's ZRO may underperform as verifier exodus raises trust concerns.
  • Chainlink's CCIP could capture institutional cross-chain volume, supporting LINK's long-term demand.

Nethermind, an Ethereum engineering firm and core contributor, has ended its role as a LayerZero decentralized verifier and joined Chainlink as a node operator and strategic technology provider, the company announced Wednesday.

The decision followed what Nethermind described as an “extensive review.” Under the new arrangement, Nethermind will help operate Chainlink’s network, contribute engineering tools and infrastructure services, and support developers integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP). A Chainlink spokesperson called the move a “notable shift” toward Chainlink’s “secure-by-default architecture” as institutional adoption of onchain finance accelerates.

CEO Daniel Celeda said the shift reflects a long-term infrastructure bet: “Being a node operator carries real responsibility for a network’s reliability, and that’s consistent with how we approach every engineering commitment we make.” Nethermind did not disclose financial terms or a migration timeline.

The move adds to a broader migration from LayerZero after an April 18 attack on Kelp DAO’s rsETH bridge. Hackers drained 116,500 rsETH, worth about $292 million at the time, using a forged cross-chain message and a single-verifier configuration. Since then, Kelp DAO, BitGo, Aave, and Wyoming’s Frontier Stable Token project have also selected or expanded Chainlink-based cross-chain operations.

Nethermind, founded in 2017, employs more than 200 people and develops a major Ethereum execution client. The firm says its software supports over 16,000 Ethereum validators and more than $5 billion in delegated assets.

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