Kraken launched kHYPE on Sept. 8 as a wrapped version of HYPE designed for decentralized finance applications on Ink. The exchange said each kHYPE token is backed one-to-one by HYPE held in Kraken custody, with reserves that users can inspect onchain.
The official launch announcement describes kHYPE as a cross-network-compatible ERC-20 token. It is available on Ink at launch, giving HYPE holders a representation that can interact with applications on Kraken’s Ethereum layer-2 network.
Kraken publishes two verification points
Kraken linked to the kHYPE smart contract on Ink and a separate HYPE custody address. Together, those records are intended to let users compare the wrapped-token supply with the underlying assets held by the exchange. Kraken said it maintains full reserves for every kHYPE minted.
The structure differs from an unsecured exchange balance because the token itself can move into supported onchain applications. It also introduces wrapper and smart-contract dependencies that do not apply when HYPE remains on its native network. Kraken’s announcement explicitly notes that wrapped assets carry risks in addition to the general risks of holding cryptocurrency.
Ink is the first supported network
Kraken said developers can integrate kHYPE into decentralized applications on Ink and holders can use the token in DeFi there. The company plans to extend compatibility to other networks, but it did not name those chains or provide a deployment timetable.
The launch adds another route for using an asset whose native staking went live earlier. BlockchainReporter previously covered Hyperliquid’s launch of HYPE staking, which concerns locking the native asset to participate in network staking rather than moving a wrapped representation into Ink applications.
The launch does not promise yield
Kraken presents kHYPE as a utility and interoperability product, not as a fixed-return instrument. Its announcement does not specify lending markets, incentive rates or applications that will guarantee a yield. Any outcome will depend on the protocols where holders choose to deploy the token.
Geographic restrictions apply, and Kraken cautioned that some crypto products and markets may lack government compensation or regulatory protection. The concrete dated development is therefore the token’s availability on Ink and the published reserve-verification setup; expansion beyond Ink remains a stated plan rather than a completed rollout.
