Kraken Brings DeFi Yield to Tokenized Stocks
Crypto exchange Kraken has launched onchain yield vaults for select tokenized stocks and ETFs, enabling clients to earn returns by lending the assets through decentralized finance (DeFi) protocols. The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx).
The yield is generated by lending the assets through onchain markets, with the deposited xStocks receiving the returns. Withdrawal requests are processed within three days.
The vaults use the same infrastructure as Kraken DeFi Earn, which launched in January and has since attracted over $800 million in deposits. The xStocks vaults are powered by Veda, with Sentora designing and managing the lending strategies used to generate yield.