Kraken Tokenized Stocks Now Bear Yield in DeFi Vaults

Kraken has introduced on-chain yield vaults for tokenized stocks, using SPYx, QQQx, and NVDAx as collateral for DeFi strategies. Investors can retain exposure to the corresponding stock or ETF while earning a potential yield.

The initial vaults cover tokenized exposure to the SPDR S&P 500 ETF, Invesco QQQ, and Nvidia. During the launch period, Kraken is displaying an estimated 2% APY net of fees for SPYx and QQQx and 1.8% for NVDAx.

The yield comes from borrowed stablecoins being deployed into DeFi strategies designed to generate rewards, which are then converted back into the original xStock and automatically reinvested. Kraken provides access to the vault but does not control the underlying strategy or protocols.