Kraken launches kHYPE, a 1:1 custodied wrapped token for HYPE, enabling integration with Ink DeFi.
Tech & Launches ·
Kraken has introduced kHYPE, a wrapped token pegged 1:1 to HYPE, the native asset of Hyperliquid's on-chain perpetual futures protocol. The wrapped version is fully custodied by Kraken and enables HYPE to be integrated into Ink DeFi applications, expanding its utility beyond Hyperliquid's ecosystem.
HYPE powers Hyperliquid's purpose-built Layer 1 blockchain, whose entire state machine functions as an order book for perpetual trading. The token serves dual roles: as the gas and governance mechanism for on-chain transactions, and as a claim on protocol fee revenue through a buyback structure that routes more than 90% of trading fees into open-market repurchases of HYPE. This mechanism creates a deflationary dynamic linked directly to platform volume.
The launch of kHYPE represents an infrastructure step to broaden HYPE's reach into decentralized finance protocols beyond its native chain. Details regarding the timing of the launch, custody arrangements, and specific Ink DeFi integrations remain unspecified in available announcements.