Kraken launches yield-generating vaults for tokenized stocks

Kraken has launched ‘xStocks Vaults’, a new feature designed to allow holders of tokenized stocks and ETFs to earn yield through decentralized finance (DeFi) protocols. This service expands the exchange's DeFi capabilities, which previously included stablecoins and Bitcoin.

The current offering supports three specific tokenized assets: the SPDR S&P 500 ETF (SPYx), the Invesco QQQ ETF (QQQx), and Nvidia (NVDAx). Under this structure, deposited tokens serve as collateral on on-chain lending markets, such as Kamino within the Solana ecosystem. The resulting yield is credited directly in the same asset held by the user, allowing them to maintain price exposure while earning rewards. Expected annual yields after fees are estimated at up to 2%.

Technical infrastructure is provided by Veda, while Sentora manages strategy design and risk oversight, including monitoring liquidity and collateral status. While users can request withdrawals at any time, processing may take up to three days. The service is subject to regional restrictions and is not available in jurisdictions including the United States, the United Kingdom, Canada, and Japan.