Kraken Brings Decentralized Finance Yield to Tokenized Stocks
Crypto exchange Kraken has introduced onchain yield vaults for tokenized stocks and ETFs, allowing clients to earn returns by lending assets through decentralized finance protocols. This move is part of Kraken's expansion into DeFi, following the launch of its DeFi Earn platform in January, which has attracted over $800 million in deposits.
The xStocks vaults currently support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx) and Nvidia (NVDAx). Yield is generated by lending these assets through onchain markets, such as Kamino on Solana. The yield is paid in the deposited xStocks.
The vaults use Veda's infrastructure and are powered by Sentora, which designs and manages the lending strategies to generate yield. Exposure limits, collateral, liquidity, and oracle conditions are monitored by Sentora.