Kraken Unleashes xStocks Vaults for Tokenized Equities Yield Generation
Kraken has introduced xStocks Vaults for generating yield on tokenized equities. The platform allows eligible non-US clients to access DeFi infrastructure and generate returns without requiring a prime broker.
The first three vaults, covering SPYx, QQQx, and NVDAx, have launched on Kraken Pro. These are tokenized versions of the S&P 500 ETF, Nasdaq-100 ETF, and Nvidia shares respectively.
The xStocks Vaults use on-chain strategies to deploy tokens as collateral in lending markets on Solana through Kamino protocol. This enables users to borrow stablecoins against deposited equities, which are then used for yield-generating activities before being swapped back into the original asset.
Users retain full price exposure to the underlying assets throughout and can earn variable yields with a current 8% offering from NVDAx. Rewards auto-compound directly into vault share prices through an embedded wallet.