Kraken Launches Tokenized Equity Lending Vaults with Nvidia, Major ETFs
Kraken has launched DeFi lending vaults for tokenized shares of Nvidia and two major ETFs, pushing deeper into traditional securities and blockchain-based lending.
The company unveiled three xStocks vault products on September 14, accepting deposits of SPYx, QQQx, and NVDAx tokens, which track the SPDR S&P 500 ETF, the Invesco QQQ ETF, and Nvidia stock respectively. The projected net annual percentage yields are 2% for the two ETF products and 1.8% for the Nvidia vault during the introductory phase.
Returns are generated by lending the tokenized assets through DeFi protocols. Once a client deposits an xStock token, Kraken moves it to an integrated wallet on Ink, the company's Ethereum layer-2 network, where it is then bridged to Solana as collateral for stablecoin financing.