Kraken Launches DeFi Yield Vaults for Tokenized Stocks and ETFs
Kraken Introduces Yield Earning on Tokenized Stocks
Kraken has launched new onchain yield vaults that let users earn returns on tokenized versions of popular stocks and exchange-traded funds (ETFs). ETFs are investment funds that trade on stock exchanges and hold assets like stocks.
The xStocks vaults use decentralized finance, or DeFi, to generate yield by lending the deposited assets through onchain markets.
Key Features of the xStocks Vaults
- Supports tokenized versions of SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx).
- Yield is paid in the deposited xStocks, with withdrawal requests processed within three days.
- Powered by Veda, with lending strategies designed and managed by Sentora.
- Assets are lent through DeFi markets like Kamino on the Solana blockchain.
What Kraken Announced
According to Kraken's announcement, the xStocks vaults are part of their Kraken DeFi Earn service, which launched in January and has attracted over $800 million in deposits. The vaults are available to eligible clients in the European Economic Area and other markets, but are excluded in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.
Confirmed Details from the Source
The source confirms that yield is generated by lending assets through DeFi protocols, and the vaults use the same infrastructure as Kraken DeFi Earn. The tokenized equities market has grown significantly, with a distributed value reaching about $2.84 billion, up from roughly $540 million a year ago, according to data from RWA.xyz.
Why This Matters for Investors
This move by Kraken provides a way for users to earn yield on tokenized traditional assets, bridging traditional finance with DeFi. The growth in tokenized equities indicates increasing interest in digital versions of stocks and ETFs.