Kraken Launches Yield Vaults For Tokenized Stocks And ETFs

Kraken introduced onchain yield vaults on Monday that let clients earn returns on tokenized stocks and ETFs by lending the assets through decentralized finance protocols.

What The New Vaults Offer

The xStocks vaults support tokenized versions of the SPDR S&P 500 ETF, the Invesco QQQ ETF and Nvidia shares. Yield is generated by lending these assets on onchain markets and is paid out in the same tokenized asset deposited. Withdrawal requests take up to three days to process. The vaults run on the same infrastructure as Kraken’s DeFi Earn product, launched in January, which has drawn more than $800 million in deposits so far.

How The Yield Is Generated

The system is built on Veda’s infrastructure, with Sentora designing and overseeing the lending strategies. Assets are lent out through DeFi markets such as Kamino on Solana, while Sentora tracks exposure limits, collateral levels, liquidity and oracle conditions. Access is limited to eligible clients in the European Economic Area and select other regions, excluding the United States, United Kingdom, Canada, Australia and the United Arab Emirates.

The launch comes as tokenized stocks and ETFs see fast growth, with total value rising to about $2.84 billion from roughly $540 million a year earlier.