Kraken launched kHYPE on Sept. 8 as a wrapped, cross-network-compatible ERC-20 representation of HYPE for decentralized finance applications on Ink, Kraken’s Ethereum layer-2 network. Each kHYPE is backed one-to-one by HYPE held in Kraken custody, and users can compare the token supply with the underlying assets through a kHYPE smart-contract record and a separate HYPE custody address. Kraken said Ink is the first supported network and plans to extend compatibility to other networks without providing names or a timetable. The token is designed for onchain utility rather than guaranteed yield; returns will depend on the protocols where holders use it. Kraken also warned of wrapper and smart-contract risks, geographic restrictions and potentially limited regulatory or government protections. The launch differs from native HYPE staking, which involves locking HYPE to participate in network staking rather than using a wrapped representation in Ink applications.