Kraken Wraps Hyperliquid's HYPE Token for Interoperability

Kraken has introduced a wrapped version of Hyperliquid's HYPE token on its Ethereum layer-2 network Ink, expanding the asset's reach into decentralized finance applications while giving holders a way to verify the underlying reserves onchain.

The exchange announced the launch of kHYPE on September 8, describing it as an ERC-20 token backed one-to-one by HYPE held in Kraken custody. Each wrapped token represents an equivalent amount of the native asset, allowing HYPE holders to interact with DeFi protocols on Ink without selling their positions.

Kraken published two verification points alongside the launch: the kHYPE smart contract address on Ink and a separate HYPE custody address. Together, those records are designed to let users compare the wrapped-token supply against the underlying assets held by the exchange. The company said it maintains full reserves for every kHYPE minted.