Key facts
- Kraken introduced xStocks vaults for tokenized equities and ETFs.
- Clients can earn yield by lending tokenized assets through DeFi protocols.
- Yield is paid in the deposited xStocks.
- The service is available in the EEA but excluded in the US, UK, Canada, Australia, and UAE.
- The value of tokenized stocks and ETFs has grown to $2.84 billion.
Crypto exchange Kraken has launched new "xStocks" vaults, allowing eligible clients to earn yield on tokenized versions of stocks and exchange-traded funds by lending them through decentralized finance (DeFi) protocols. The service, announced on Monday, supports tokenized assets such as the SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx).
Yield generated from lending these assets is paid in the deposited xStocks, with withdrawal requests processed within three days. This offering utilizes the same infrastructure as Kraken's existing DeFi Earn product, which has accumulated over $800 million in deposits since its January launch. The xStocks vaults are powered by Veda, and Sentora manages the lending strategies, utilizing DeFi markets like Kamino on Solana. Sentora also oversees exposure limits, collateral, liquidity, and oracle conditions.
The xStocks vaults are accessible to eligible Kraken clients in the European Economic Area and other select markets, but are explicitly excluded from users in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates. This launch coincides with a significant increase in the tokenization of equities, with the total distributed value of tokenized stocks and ETFs reaching approximately $2.84 billion, a substantial rise from about $540 million a year prior, according to data from RWA.xyz.