Kraken has launched onchain yield vaults for tokenized stocks and ETFs, according to a Monday announcement. The xStocks vaults enable clients to generate returns by lending digital versions of traditional assets through decentralized finance protocols.
The vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), the Invesco QQQ ETF (QQQx) and Nvidia (NVDAx). Yield is paid in the deposited xStocks, with withdrawal requests processed within three days.
The vaults operate on Kraken DeFi Earn infrastructure, a service launched in January that has drawn more than $800 million in deposits. Veda powers the xStocks vaults, while Sentora designs and manages the underlying lending strategies. Assets are lent through DeFi markets including Kamino on Solana.
Sentora actively monitors collateral, liquidity and oracle conditions to manage risk within the strategies and sets exposure limits for lent assets across the DeFi ecosystem.
The vaults are accessible to eligible Kraken clients in the European Economic Area and other international markets, but not in the United States, United Kingdom, Canada, Australia or the United Arab Emirates.
Tokenized equities have grown substantially. The total distributed value of tokenized stocks and ETFs reached approximately $2.84 billion, according to RWA.xyz data, up from roughly $540 million a year ago.
