Kraken has introduced onchain xStocks vaults that let eligible clients earn yield on tokenized versions of major US equity products by lending them into decentralized finance markets. The initial lineup includes tokenized shares of Nvidia and tokenized ETF products tied to the S&P 500 and Nasdaq-100 through SPYx, QQQx and NVDAx. Returns are paid in the same xStocks users deposit, and withdrawal requests are processed within three days. Kraken said the product runs on the same infrastructure as Kraken DeFi Earn, which the company says has gathered more than $800 million in deposits since its January launch. The vaults are powered by Veda, while Sentora designs and manages lending strategies and oversees exposure limits, collateral, liquidity and oracle conditions. Assets are lent through DeFi venues including Kamino on Solana. The rollout is available to eligible clients in the European Economic Area and certain other markets, but not in the United States, the United Kingdom, Canada, Australia or the United Arab Emirates. The launch comes as tokenized equities continue to expand, with RWA.xyz data showing the distributed value of tokenized stocks and ETFs rising to about $2.84 billion from roughly $540 million a year earlier.
Kraken has rolled out onchain yield vaults for selected tokenized stocks and exchange-traded funds, giving clients a way to earn returns by lending those assets through decentralized finance protocols, according to a Monday announcement.
The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF, listed as SPYx, the Invesco QQQ ETF, listed as QQQx, and Nvidia, listed as NVDAx. Yield comes from lending the assets through onchain markets. Returns are paid in the same xStocks deposited, and withdrawal requests are processed within three days.
xStocks vaults use Kraken DeFi Earn infrastructure
Kraken said the vaults run on the same infrastructure as Kraken DeFi Earn, a product launched in January. Since then, the company said, DeFi Earn has attracted more than $800 million in deposits.
The xStocks vaults are powered by Veda. Sentora designed and manages the lending strategies used to produce yield. Assets are lent through DeFi markets including Kamino on Solana, while Sentora sets exposure limits and monitors collateral, liquidity and oracle conditions.
Product is unavailable in the US, UK, Canada, Australia and UAE
The vaults are available to eligible Kraken clients in the European Economic Area and other markets. Kraken said the product is excluded in the United States, the United Kingdom, Canada, Australia and the United Arab Emirates.
Tokenized equities market has climbed to about $2.84 billion
Kraken’s launch arrives as tokenized equities continue to grow quickly. Data from RWA.xyz shows the distributed value of tokenized stocks and ETFs has climbed to about $2.84 billion, up from roughly $540 million a year ago.
Cointelegraph’s accompanying image cited RWA.xyz as the source for tokenized equities data.
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