kHYPE Whitepaper

v1.0 | Viimeksi päivitetty: 8. syyskuuta 2026

kHYPE

Kraken Wrapped HYPE (“kHYPE”) is a wrapped token issued by Kraken and backed 1:1 by native HYPE (“HYPE”) held in custody by Kraken Financial, a Wyoming-chartered SPDI (Special Purpose Depository Institution). Eligible Kraken users can deposit and withdraw kHYPE at a 1:1 rate to HYPE.

kHYPE launches on Ink. Kraken plans to later expand support to additional networks, including non-EVM ecosystems.

Because kHYPE is 1:1 redeemable for HYPE, any kHYPE holder’s expectation of profiting beyond this peg is unreasonable.

Secure and Transparent 1:1 Backing

Anyone can verify at any time that Kraken holds full HYPE reserves for kHYPE, by comparing the balance of the HYPE reserve wallet 0x8f13f610a732d872134494dc2de14d2fcfdec5c4 against the total supply of the kHYPE token contract on Ink 0xAd09Cd20e513E4d8cB78036F77Ab9AfdE8555929.

Kraken maintains segregated reserves of HYPE with Kraken Financial. As a state-chartered bank, Kraken Financial is mandated to attain certain standards of safety and security expected from a regulated financial institution, with digital assets protected by advanced encryption and security protocols at all times.

How it works

Exchanging HYPE for kHYPE and vice versa

Eligible Kraken users can withdraw and deposit kHYPE:

  • To receive kHYPE, initiate a withdrawal of HYPE from your Kraken account and select the Ink (kHYPE) network. An equivalent amount of kHYPE will be sent to your external withdrawal address.

  • To exchange kHYPE back to HYPE, initiate a deposit of kHYPE to your Kraken account. An equivalent amount of HYPE will be deposited to your Kraken account.

There are no fees for depositing or withdrawing kHYPE. Minimum deposit and withdrawal amounts apply.

Token Smart Contract Architecture

The kHYPE smart contract has undergone review by Kraken's engineering and security teams, as well as a third-party smart contract security audit by ChainSecurity. The contract is deployed on Ink at 0xAd09Cd20e513E4d8cB78036F77Ab9AfdE8555929.

Kraken holds effective control over the token contract and its token management functions through a secure and Kraken-controlled wallet.

Compliance and Associated Risks

Smart contract risk: Smart contracts may have vulnerabilities or flaws that could be exploited, potentially leading to a loss of funds.

1:1 peg: There is no guarantee that one kHYPE will always equal one HYPE on third-party platforms. The price of kHYPE on such platforms is determined by the market and may diverge from the price of HYPE.

Staking and rewards: HYPE held in a Kraken account may be eligible to earn staking rewards. HYPE withdrawn as kHYPE is no longer held in your Kraken account and does not earn those rewards.

Reference network risk: kHYPE represents HYPE, a token native to a separate blockchain network that Kraken does not operate or control. Changes to that network — including to its validator set, its staking or slashing rules, or its governance — may affect the value of HYPE and therefore of kHYPE.

Regulatory changes: Changes in legislation or regulation may adversely affect the value of kHYPE and the ability to transact in it, including the ability to withdraw and deposit kHYPE.

Third parties: kHYPE is used on decentralized, open-source blockchains that Kraken does not control. Technical issues on those chains may restrict the transfer or use of kHYPE. In the event of a fork, Kraken reserves the right to suspend withdrawals and deposits of kHYPE temporarily or indefinitely, on little or no notice, and will determine in our sole discretion which fork we will support, if any.

(For more details, please refer to the kHYPE section of the Kraken Terms of Service.)

Custody services provided by Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution. Kraken Financial is not an FDIC-insured bank and deposits are neither insured by nor subject to the protections of the FDIC.