Crypto exchange Kraken has launched onchain yield vaults for select tokenized stocks and ETFs, allowing clients to earn returns by lending the assets through decentralized finance protocols, according to a Monday announcement.
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 through onchain markets. Yield is paid in the deposited xStocks, while withdrawal requests are processed within three days.
The vaults use 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 powered by Veda, with Sentora designing and managing the lending strategies used to generate yield. Assets are lent through DeFi markets such as Kamino on Solana, with Sentora setting exposure limits and monitoring collateral,…
