Kraken has launched xStocks vaults, allowing clients to earn yield on tokenized stocks and ETFs by lending these 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 shares (NVDAx). Yield is paid directly in the deposited xStocks. Withdrawal requests process within three days.
Kraken's xStocks vaults use the same infrastructure as its existing DeFi Earn product, which launched in January and has accumulated more than $800 million in deposits.
Veda powers the underlying technology. Sentora designs and manages the lending strategies, which route assets through established DeFi markets including Kamino on Solana. Sentora sets exposure limits and monitors collateralization, liquidity, and oracle feeds.
The vaults are available to eligible Kraken clients in the European Economic Area and certain other markets, but not to clients in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.
The launch arrives as tokenized equities expand rapidly. The total distributed value of tokenized stocks and ETFs reached approximately $2.84 billion, up from roughly $540 million a year ago, according to RWA.xyz data.
