Kraken Unveils xStocks Onchain Yield Vaults for Tokenized Equities

Kraken has launched 'xStocks' onchain yield vaults for select tokenized equities and ETFs, allowing clients to lend their holdings through decentralized finance (DeFi) protocols and generate yield. The vaults currently support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx).

The xStocks vaults work by lending the deposited tokens through onchain markets, generating yield that is paid back to clients in the same tokenized equity/ETF wrapper. This means investors can keep their positions denominated in the original asset class rather than receiving interest in a different asset.

Kraken's announcement frames xStocks as an 'onchain yield vault' for tokenized equities and ETFs, which are created on public infrastructure. The company said the service is powered by Veda and uses the same infrastructure as Kraken DeFi Earn, which has attracted more than $800 million in deposits since its January launch.

The xStocks vaults are available to eligible clients in the European Economic Area and other markets but are excluded in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates. This restriction may limit immediate access and affect how quickly tokenized equity yield products can scale globally.