Kraken brings DeFi yield to tokenized stocks and ETFs
Kraken’s new xStocks vaults let investors earn yield on tokenized versions of Nvidia and major US stock market ETFs by lending the assets in DeFi markets.
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.