Kraken Expands DeFi Yield to Tokenized Stocks and ETFs

Crypto exchange Kraken has expanded its DeFi offerings to tokenized stocks and ETFs. The platform launched onchain yield vaults for select assets, allowing clients to earn returns by lending them through decentralized finance protocols.

The new xStocks vaults currently support the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx). These tokenized versions of traditional stocks and ETFs can be lent out to generate yield, paid in the deposited xStocks.

The vaults use the same infrastructure as Kraken's DeFi Earn, which has attracted over $800 million in deposits since its launch in January. The xStocks vaults are powered by Veda and Sentora, with Sentora designing and managing the lending strategies to generate yield.