Kraken's xStocks Vaults Launch with Up to 2% Yield on Tokenized Stocks

Kraken has launched its xStocks Vaults, allowing holders of tokenized stocks to earn up to 2% yield on their positions. The vaults are available for SPYx, QQQx, and NVDAx assets.

The yield is generated through a strategy that borrows stablecoins against the collateralized xStocks, placing them in DeFi strategies such as lending protocols like Kamino markets on Solana. The gains are converted back into xStocks and reinjected, with no allocation or withdrawal fees.

However, investors should be aware of the risks involved, including leverage, smart contract failures, and exposure to downstream assets. The 2% rate is only an estimate and may vary depending on borrowing demand on onchain markets.