Kraken Brings DeFi Yield to Tokenized Stocks and ETFs

Crypto exchange Kraken has introduced on-chain yield vaults for select tokenized stocks and ETFs, allowing clients to earn returns by lending the assets through decentralized finance protocols.

The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx) and Nvidia (NVDAx), with yield generated by lending the assets through on-chain markets.

Yield is paid in the deposited xStocks, while 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 more than $800 million in deposits, according to the company.