Kraken Offers Up to 2% Yield on Tokenized Stocks with xStocks Vaults
Kraken, a leading cryptocurrency exchange, has launched xStocks Vaults, allowing users to earn up to 2% Annual Percentage Yield (APY) on their tokenized stocks and ETFs. This new feature is designed to provide investors with an additional layer of earning potential without requiring them to sell their holdings.
The vaults support three assets: SPYx, which represents the S&P-500; QQQx, the Nasdaq-100; and NVDAx, a token-based representation of NVIDIA. Users can deposit these xStocks in a vault and earn rewards, with the yield accruing continuously and paid in-kind.
Kraken's DeFi Earn platform has seen significant adoption since its launch earlier this year, with over $800 million deposited. The company is promoting yields of up to 2% APY during the initial rollout, although it warns that market risk, liquidity risk, smart-contract risk, and other risks associated with DeFi banking and on-chain infrastructure are involved.
Withdrawals from xStocks Vaults can be requested at any time, but may take up to three days for returned stocks to appear in the user's Kraken balance. The launch is aimed at providing tokenized equity investors with another avenue of exposure to the equity asset class beyond holding or trading tokens.