Nethermind has ended its LayerZero verifier role and moved its cross-chain operations to Chainlink after reviewing the two infrastructure providers.
Summary
- Nethermind has stopped operating a decentralized verifier network within LayerZero.
- The Ethereum engineering firm has joined Chainlink as a node operator and technology provider.
- Nethermind did not identify a LayerZero flaw or disclose the migration’s cost and completion date.
- BitGo, Kelp DAO, and Wyoming have also selected Chainlink for cross-chain operations.
Nethermind said Wednesday that it had migrated away from its decentralized verifier network operations and joined Chainlink as a node operator and strategic technology provider.
The company will help operate Chainlink’s network while supplying engineering tools, infrastructure services, and integration support to blockchain developers. Nethermind said the decision followed an “extensive review,” but it did not publish the review or explain which technical and operational factors determined the result.
As part of the change, Nethermind will concentrate its cross-chain work on Chainlink’s Cross-Chain Interoperability Protocol. CEO Daniel Celeda described the move as a long-term infrastructure decision tied to the responsibilities carried by node operators.
“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.”
Neither company disclosed the financial terms of the arrangement. Nethermind also did not provide a deadline for completing the migration, saying only that it would issue updates as the process continued.
Nethermind’s Chainlink role replaces LayerZero verification
Within LayerZero, decentralized verifier networks independently check whether messages sent between blockchains are genuine and unchanged. Applications can choose which DVNs verify their messages and set the number of approvals needed before a transaction proceeds.
LayerZero’s documentation describes each DVN as a combination of smart contracts and off-chain systems. Once a message leaves its source blockchain, the selected verifiers confirm its digital fingerprint before the message can be committed and executed on another network.
Nethermind had served as one of the infrastructure operators available under that model. Its own website previously listed LayerZero DVNs among the cross-chain services run through its globally distributed infrastructure.
Under the Chainlink arrangement, Nethermind will instead operate a node within Chainlink’s network. Chainlink says its CCIP system uses independent node operators, transaction limits and a separate risk-management network to monitor cross-chain activity.
Reportedly, the move represented a decision by a major LayerZero infrastructure operator to use Chainlink’s “secure-by-default architecture.” Because the description came from Chainlink, it does not independently establish that one system eliminates the technical, governance, or operational risks found in cross-chain infrastructure.
Celeda said Nethermind has historically made “deliberate, long-term bets” on infrastructure that it believes will support on-chain financial services. Consolidating the firm’s cross-chain work around CCIP followed the same approach, he added.
LayerZero migrations followed the $292 million rsETH attack
Nethermind’s decision arrives four months after hackers drained 116,500 rsETH, worth about $290 million at the time, from Kelp DAO’s LayerZero-powered bridge.
The April 18 attack involved a forged cross-chain message and a single-verifier configuration. The attacker created unbacked rsETH and later placed much of it into Aave lending positions to borrow wrapped Ether, spreading losses beyond the bridge itself.
In May, Kelp DAO announced an rsETH migration to Chainlink while disputing LayerZero’s account of the security setup. Kelp said LayerZero had known about its 1-of-1 verifier arrangement and had previously treated the configuration as secure.
LayerZero CEO Bryan Pellegrino rejected Kelp’s claims. He said the protocol initially used a multi-verifier setup involving LayerZero Labs and Google before changing it to a single verifier, a configuration he said LayerZero had not recommended for production.
After the attack, LayerZero said it would stop approving messages for applications secured by only one verifier and would move affected projects toward configurations with multiple DVNs. LayerZero also attributed the incident to a compromised verifier rather than a flaw in its core messaging protocol.
Nethermind has not said whether the Kelp exploit triggered its review. Its announcement did not identify a security failure at LayerZero.
Other large projects have made comparable decisions since the attack. BitGo selected Chainlink in August as the exclusive cross-chain provider for Wrapped Bitcoin, replacing LayerZero across a WBTC ecosystem then valued at about $7.3 billion. As previously reported by crypto.news, the announcement brought the value covered by publicly disclosed LayerZero-to-Chainlink migrations to nearly $15 billion.
Aave adopted CCIP in July as the default system for cross-chain functions across its app and Stable Vaults. The protocol already used the service for GHO stablecoin transfers and governance messages before expanding the CCIP integration to deposits, withdrawals, vault rebalancing, and asset movements.
Wyoming adds a U.S. public-sector angle
For U.S. users, the closest public-sector comparison comes from Wyoming’s Frontier Stable Token, or FRNT. The Wyoming Stable Token Commission said on Aug. 18 that it had completed its migration from LayerZero to Chainlink following a state security review.
FRNT is issued by a U.S. public entity and is available on eight blockchains, including Ethereum, Solana, Base, Arbitrum, and Avalanche. Wyoming holds its reserves in cash and short-term U.S. Treasury securities, while reserve income supports the state’s School Foundation Program.
The commission named disclosure practices and operational security among its concerns about LayerZero. Executive Director Anthony Apollo said CCIP was the only system assessed by the state that met its security and reliability requirements “across the board.”
Under a multiyear agreement, Chainlink has become the exclusive cross-chain provider for FRNT, and the state has deprecated its LayerZero bridge. The Wyoming security review was not released publicly, leaving its full criteria and technical findings unavailable.
LayerZero said it respected Wyoming’s decision and was assisting with the transition. A company spokesperson said LayerZero had strengthened its security approach in recent months but did not address the state commission’s specific disclosure concerns.
Nethermind supports core Ethereum infrastructure
Founded in 2017, Nethermind develops one of Ethereum’s main execution clients, software used by network nodes to process transactions and maintain Ethereum’s state. The firm employs more than 200 people across client development, cryptography, blockchain security, formal verification, and institutional infrastructure.
According to Nethermind, its software supports more than 16,000 Ethereum validators and over $5 billion in delegated assets. Its infrastructure clients and partners include EtherFi, Gnosis, Lido, StarkWare, World, and Arbitrum.
Nethermind also contributes to Ethereum and Starknet development while providing smart-contract audits, research, and engineering services to financial institutions and crypto protocols. The company said its new Chainlink role will include technical support for developers integrating cross-chain services, alongside its responsibility for operating network infrastructure.
