Kraken Launches xStocks Vaults for Tokenized Stocks Earnings

Kraken has launched xStocks Vaults, allowing users to earn up to 2% APY on tokenized stocks and ETFs. The vaults provide onchain lending strategies powered by Veda and Sentora, enabling withdrawals at any time but with a minimum return period of three days.

The xStocks Vaults support three assets: SPYx (representing the S&P-500), QQQx (the Nasdaq-100), and NVDAx (a token-based representation of NVIDIA). Users can deposit these tokens into the vaults, which will provide additional rewards without reducing the asset's value.

The yield is paid in-kind, meaning users receive more xStocks rather than a separate cryptocurrency or cash reward. This setup eliminates traditional DeFi complexity and allows users to track their allocations onchain through self-custodial wallets.