- For tokenized Nvidia, S&P 500, and Nasdaq-100 ETFs, Kraken introduced xStocks yield vaults.
- By lending tokenized equities and ETFs via onchain exchanges, users can generate DeFi yield.
- DeFi marketplaces, such as Kamino on Solana, are used to provide yield on xStocks that have been deposited.
- The US, UK, Canada, Australia, and UAE are not among the markets where eligible customers can access Kraken’s xStocks vaults.
Kraken has launched new onchain yield vaults for select tokenized stocks and exchange-traded funds (ETFs), giving eligible clients a way to earn returns on assets linked to major US equities through decentralized finance (DeFi).
Kraken Launches xStocks Yield Vaults
The new xStocks vaults allow users to deposit tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx) and Nvidia (NVDAx). Instead of simply holding these tokenized assets, investors can lend them through onchain DeFi markets to generate additional yield.
Returns are paid in the deposited xStocks, while Kraken says withdrawal requests can take up to three days to process. The offering uses the same infrastructure behind Kraken DeFi Earn, a product launched in January that has attracted more than $800 million in deposits, according to the exchange.
The move gives tokenized equity holders another way to put their assets to work while maintaining exposure to the underlying stocks or ETFs.
DeFi Protocols Power Tokenized Equity Lending
The xStocks vaults are powered by Veda, while Sentora designs and manages the lending strategies behind the product. The strategies use DeFi lending markets, including Kamino on Solana, to generate returns from deposited assets.
Sentora is responsible for managing exposure limits and monitoring factors such as collateral levels, liquidity and oracle conditions. These controls are designed to help manage the risks associated with lending tokenized assets across onchain markets.
Kraken’s approach connects traditional market exposure with DeFi infrastructure, allowing tokenized equities to participate in lending markets rather than remaining solely as passive investment assets.
Tokenized Stocks Market Continues To Expand
Kraken’s launch comes as tokenized stocks and ETFs gain traction across the digital asset market. Data from RWA.xyz shows that the distributed value of tokenized stocks and ETFs has reached about $2.84 billion, compared with roughly $540 million a year earlier.
The increase highlights growing demand for blockchain-based representations of traditional financial assets and new ways to use them across digital markets.
However, access to Kraken’s xStocks vaults is limited by geography. The product is available to eligible clients in the European Economic Area and certain other markets, but is not offered in the United States, United Kingdom, Canada, Australia or the United Arab Emirates.
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