Crypto exchange Kraken has launched onchain yield vaults for select tokenized equities and ETFs, enabling investors to earn passive returns on traditional asset exposures. The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx).
The vaults leverage infrastructure from Kraken DeFi Earn, moving deposited assets to non-custodial wallets on Kraken’s Ink Layer-2 before deploying them into decentralized protocols. Built on Veda’s vault architecture and risk-managed by Sentora, the strategy supplies xStocks as collateral in Solana-based lending markets like Kamino. Borrowed stablecoins are used to generate yield, which is converted back and paid out in the deposited xStock asset. Yields auto-compound, while withdrawal requests process within a three-day window.
The offering is available to eligible Kraken clients in the European Economic Area and select global jurisdictions, while excluding users in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates. The launch reflects rapid institutional expansion in real-world asset (RWA) tokenization, as the total market capitalization of tokenized stocks and ETFs has grown to approximately $2.84 billion from $540 million over the past year.
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