Kraken adds DeFi yield to tokenized stocks and ETFs

Kraken has introduced onchain yield vaults for select tokenized stocks and exchangetraded funds, letting eligible clients earn returns by lending those assets through decentralized finance protocols. The new xStocks vaults currently support tokenized versions of the SPDR S&P 500 ETF, Invesco QQQ ETF and Nvidia shares. Yield is paid in the deposited xStocks, and withdrawals are expected to take up to three days. Kraken said the vaults use the same infrastructure as its DeFi Earn product, which launched in January and has drawn more than $800 million in deposits. The program is powered by Veda, with Sentora managing lending strategies and risk controls, while assets are lent through DeFi markets including Kamino on Solana. The service is available to eligible Kraken clients in the European Economic Area and some other markets, but not in the United States, United Kingdom, Canada, Australia or the United Arab Emirates. The launch comes as the market for tokenized equities has grown to about $2.84 billion, according to RWA.xyz.