Kraken officially launched kHYPE on Sept. 8, 2026, a wrapped version of Hyperliquid's HYPE token designed for decentralized finance applications on Ink, Kraken's Ethereum layer-2 network. The exchange said each kHYPE token is backed one-to-one by HYPE held in Kraken custody, and reserves can be inspected onchain.
According to Kraken, kHYPE is a cross-network-compatible ERC-20 token and is available on Ink at launch. This gives HYPE holders a representation that can interact with applications on Ink while remaining linked to the underlying asset. Kraken published two verification points: the kHYPE smart contract on Ink and a separate HYPE custody address. Together, those records let users compare the wrapped-token supply with the underlying assets held by the exchange.
The exchange emphasized that it maintains full reserves for every kHYPE minted. The launch does not promise yield; Kraken describes kHYPE as a utility and interoperability product rather than a fixed-return instrument. Any outcome depends on the protocols where holders choose to deploy the token. Kraken also cautioned that wrapped assets carry additional risks, including wrapper and smart-contract dependencies, beyond the general risks of holding cryptocurrency.
Ink is the first supported network. Kraken said developers can integrate kHYPE into decentralized applications on Ink, and the company plans to extend compatibility to other networks, although no chains or deployment timetable were named. The launch adds another on-chain route for HYPE, whose native staking previously went live, though staking the native asset differs from moving a wrapped representation into Ink applications.
As a fresh listing, kHYPE currently has no reported trading volume. Market watchers note that adoption will depend on whether DeFi users integrate the token and whether liquidity, spreads, and app support develop beyond Kraken's own platform. Geographic restrictions apply, and Kraken noted that some crypto products and markets may lack government compensation or regulatory protection.
