The new xStocks vaults allow Kraken users to generate returns by lending tokenized assets through decentralized finance protocols. The platform currently supports tokenized versions of Nvidia (NVDAx), the SPDR S&P 500 ETF (SPYx), and the Invesco QQQ ETF (QQQx).
Yield is paid out in the deposited xStocks, and the company processes withdrawal requests within a three-day period. The infrastructure for these vaults mirrors the Kraken DeFi Earn service, which has accumulated over $800 million in deposits since its launch in January.
The initiative is powered by Veda, while Sentora manages the lending strategies, including exposure limits and collateral monitoring. Assets are lent via DeFi markets such as Kamino on the Solana blockchain.
Access to the vaults is restricted to eligible clients in the European Economic Area and specific international markets. The service is currently unavailable to residents of the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.
The launch follows a significant expansion in the tokenized equities sector. According to RWA.xyz data, the total value of tokenized stocks and ETFs has reached approximately $2,84 billion, marking a substantial increase from $540 million a year ago.
