Kraken launches kHYPE, says it is backed 1:1 by HYPE

Kraken launches kHYPE, says token is backed 1:1 by HYPE in custody By Thiago Alvarez Kraken has launched kHYPE, offering a token it says is fully backed by HYPE held in custody. The launch brings Hyperliquid’s token to Ink, but the backing statement remains an issuer claim, and Kraken’s redemption terms include conditions. For related coverage, see Strategy Pauses BTC Buys, Launches $1.6B Cash Pool After $2B Raise. Key TakeawaysKraken has launched kHYPE on Ink. Kraken says each kHYPE has an equivalent amount of HYPE backing it in custody. Kraken identifies its custody provider, but the evidence reviewed does not independently verify reserves against outstanding supply. Kraken launches kHYPE Kraken published its launch announcement on September 8, 2026, describing kHYPE as an Ethereum Request for Comments 20 (ERC-20) token, a standard used by Ethereum-compatible applications. Ink is the launch network; support for additional networks remains a future plan. According to Kraken’s announcement, each kHYPE is backed by an equivalent amount of HYPE held in Kraken custody. That describes the company’s stated backing arrangement, rather than an independently established reserve balance. For related coverage, see Nexo Launches Crypto-Backed Credit Product in Australia. Kraken-stated HYPE backing per kHYPE 1:1 Kraken says each kHYPE is backed by an equivalent amount of HYPE held in Kraken custody. This is an issuer statement; live custody balances have not been independently reconciled with outstanding kHYPE supply. The launch adds another product alongside Kraken’s US-listed stock trading for European Economic Area customers and Krak US debit card. For kHYPE, Kraken’s product documentation says access runs through HYPE withdrawals, with no kHYPE trading pairs currently available on its product. What Kraken says about kHYPE’s HYPE backing Kraken’s product documentation identifies the custody provider as Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. It also says deposits are not insured by the Federal Deposit Insurance Corporation (FDIC), so the custody arrangement does not provide federal deposit insurance. For related coverage, see Cypherpunk Launches Zcash Mining Fleet, Claims 18% of Network Hashrate. The announcement links to the kHYPE contract on Ink and a HYPE custody address, offering locations to inspect the token and backing assets. However, the custody explorer returned no readable balances in the evidence collected for this report, and outstanding kHYPE supply was not retrieved; those links alone do not establish a reserve reconciliation. Kraken’s launch post promotes use across decentralized finance (DeFi) on Ink and says holders can swap back at any time. Its product terms qualify redemption as subject to availability and applicable terms, a limit relevant to that promotional language. kHYPE is live on Kraken. Wrapped HYPE, backed 1:1 in Kraken custody. Verifiable onchain. Usable across DeFi on @Inkonchain. Swap back anytime.