Kraken Launches DeFi Yield Vaults for Tokenized Nvidia, SPY, and QQQ Stocks

Kraken has launched onchain yield vaults for tokenized stocks and ETFs, enabling eligible clients to earn returns by lending the assets through decentralized finance protocols. The new xStocks vaults support tokenized versions of the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx), with yield generated by lending the assets across onchain lending markets. Yield is paid in the deposited xStocks, and withdrawal requests are processed within three days.

The vaults are powered by yield infrastructure provider Veda, with Sentora designing and managing the lending strategies used to generate yield. Assets are lent through DeFi markets including Kamino on Solana, while Sentora sets exposure limits and monitors collateral, liquidity, and oracle conditions. The product builds on the same infrastructure as Kraken DeFi Earn, which launched in January and has since attracted more than $800 million in deposits, according to the company.

The xStocks vaults are available to eligible Kraken clients in the European Economic Area and other permitted markets, but access is excluded in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates. Kraken's launch comes amid rapid growth in tokenized equities, with the total distributed value of tokenized stocks and ETFs climbing to roughly $2.84 billion, up from approximately $540 million a year ago, according to RWA.xyz data.