Kraken Brings DeFi Yield to Tokenized Stocks and ETFs

Kraken, a major crypto exchange, has introduced onchain yield vaults for select tokenized stocks and ETFs. This feature allows 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). Yield generated by lending these assets 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. The xStocks vaults are powered by Veda, with Sentora designing and managing the lending strategies used to generate yield.