xStocks Vaults Go Live on Kraken, Bringing DeFi Yield to Tokenized Equities on an Exchange
Earn yield on SPYx, QQQx and NVDAx on Kraken and Kraken Pro. Keep full price exposure, earn variable yield onchain.
We're excited to introduce xStocks Vaults, a new product for tokenized equity holders to put their positions to work. Holders of SPYx, QQQx and NVDAx now earn up to 2% net of fees on their xStocks. Fully transparent, onchain, within Kraken, and all while keeping full exposure to the underlying asset and any dividends.
Holders can allocate from as little as $1. Each xStock maps 1:1 to its own dedicated vault and rewards accrue in that xStocks, so a deposit of SPYx earns more SPYx. Deallocation can be requested at any time, with a 3-day deallocation period.
The vaults are powered by Veda and operated by Sentora, relying on Privy embedded wallets for holders to access in self-custody. The yield strategies are run on blue-chip lending protocols such as Kamino on Solana.
DeFi vaults on Kraken launched in January with stablecoins and expanded to Bitcoin in May. Combined deposits across both have passed $800 million with zero liquidations to date. Tokenized equities are the newest addition to that infrastructure, building on the same underlying foundation.
"Every xStocks position sitting untouched is capital not working as hard as it should. Clients can already earn dividend yield on select xStocks, and our new vaults enable clients to earn additional onchain yield on their holdings," said Darius Tabatabai, Head of Kraken Pro.
Chainlink CCIP enables xStocks to be securely bridged to Solana, while Chainlink Data Streams provides sub-second market data for xStocks used as collateral on Kamino.
How xStocks Vaults work in Kraken
Three simple steps to start earning yield on your xStocks:
- Allocate. Deposit SPYx, QQQx or NVDAx into a vault straight from your Kraken or Kraken Pro account. Behind the scenes, a self-custodial embedded wallet from Privy is enabled to seamlessly provide you access to the vault.
- Earn. Sentora’s Earn solutions borrow stablecoins against the vault's xStocks and deploy these into higher-yielding strategies, starting with Kamino. Rewards in the Kraken Vaults accrue in the underlying xStocks.
- Withdraw. Request deallocation at any time.
xStocks Vaults are available everywhere Kraken operates, except US, UK, Canada, Australia, India, UAE, Philippines, Kazakhstan, New Zealand, Singapore, and Hong Kong and sanctioned countries.
Traditional brokerages have offered securities-lending programs on idle equity positions for years, but they are notoriously opaque: most holders never see the rate, the split, or whether their position is even on loan.
xStocks Vaults are built the opposite way.
The vault, the strategy, the allocations and the performance fee are all public onchain. The infrastructure behind them is backed by proven scale: Veda's platform routes vault strategies across protocols including Morpho, AAVE, Kamino, Euler and Curve, and has processed more than $16 billion in deposits for over 300,000 end users globally.
SPYx, QQQx and NVDAx are the first xStocks Vaults, not the last. More assets and integrations to come.