Kraken has officially launched xStocks vaults, an onchain yield service designed specifically for tokenized stocks and ETFs. The move makes Kraken the first crypto exchange to offer direct DeFi yields on tokenized equity assets.
In its initial rollout phase, Kraken opened support for three major investment instruments. Users can deposit SPYx representing the SPDR S&P 500 ETF, or opt for QQQx tracking the Invesco QQQ index. The vaults also accept NVDAx for investors seeking exposure to the tokenized version of Nvidia shares.
Yield payouts are distributed to users in the form of the exact same xStocks as their underlying deposited assets. If users decide to liquidate their assets, Kraken will process all redemptions within three days.
Lending Strategies Behind the Vaults
The yield generation process relies on lending users’ tokenized assets across various onchain DeFi markets. One of the primary deployment destinations is Kamino, a decentralized finance protocol running on the Solana network.
To ensure smooth lending operations, xStocks vaults are powered by technical infrastructure from Veda. Meanwhile, Sentora takes on a dedicated role in designing and managing asset lending strategies to maintain optimal fund allocation.
The technical framework of xStocks is built upon the same system as Kraken DeFi Earn. That predecessor product, launched in January, has now attracted over $800 million in user deposits.
Tokenized Market Surpasses $2.84 Billion
The xStocks service is open to Kraken clients in the European Economic Area (EEA) alongside several other global markets. Conversely, regulatory restrictions keep the feature completely unavailable to users residing in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.
According to reports from analytics platform RWA.xyz, the total global value of tokenized stocks and ETFs has now reached $2.84 billion. This market valuation has surged significantly compared to just $540 million a year ago.
Kraken’s initiative bridges conventional equity assets with the decentralized finance ecosystem. For retail investors outside restricted jurisdictions, the product offers a way to earn additional yield from global equity exposure without leaving the crypto exchange interface. Reported via Cointelegraph.
Read also: What Is DeFi (Decentralized Finance)?
Read also: Clearpool Brings Institutional Credit to XRP Ledger - Requires All CPOOL Tokens Swapped to CLEAR 1:1
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
