Kraken Launches kHYPE Wrapped Token for Ink DeFi

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.