Kraken has launched a new set of onchain yield products that allow eligible customers to generate returns on tokenized versions of major U.S. equities and exchange-traded funds. The offering, known as xStocks vaults, extends the exchange’s existing DeFi yield infrastructure to tokenized assets including the SPDR S&P 500 ETF, the Invesco QQQ Trust, and Nvidia shares.

Product Scope and Yield Structure

The initial vaults support three tokenized instruments: SPYx, which tracks the SPDR S&P 500 ETF Trust; QQQx, linked to the Invesco QQQ Trust; and NVDAx, which provides exposure to Nvidia. Customers deposit these xStocks into the vaults and receive yield paid in the same deposited tokens rather than a separate reward asset.

During the launch period, Kraken displays estimated net annual percentage yields of 2 percent for SPYx and QQQx and 1.8 percent for NVDAx. These figures already incorporate a 25 percent performance fee charged on earnings. Deposits and withdrawals incur no additional platform fees or Ink network gas costs. Yields are variable and recalculated based on the previous seven days of activity, driven primarily by stablecoin borrowing demand in the underlying lending markets.

Returns accrue continuously and are automatically reinvested into the vault balance. Withdrawal requests are processed within three days, though periods of elevated demand or reduced liquidity may extend that timeline.

Operational Framework and Partners

The xStocks vaults operate on the same technical foundation as Kraken DeFi Earn, a service introduced in January that has attracted more than $800 million in deposits. After a customer deposits an eligible xStock, the asset moves to an embedded self-custody wallet on Ink, Kraken’s Ethereum layer-2 network. The token is then wrapped and placed into vault infrastructure provided by Veda.

Sentora designs and manages the lending strategies and acts as risk manager. Assets are bridged to Solana, where they serve as collateral on the Kamino lending market to borrow stablecoins. Those stablecoins are deployed into selected decentralized finance strategies. Proceeds are converted back into the original xStock and added to the customer’s position.

Kraken provides access to the product but does not manage the strategies or control the protocols that receive the assets. Sentora sets exposure limits and monitors collateral levels, liquidity conditions, and oracle data.

Availability and Geographic Limits

The vaults are available to eligible Kraken clients in the European Economic Area and certain other jurisdictions. They are not offered to residents of the United States, the United Kingdom, Canada, Australia, or the United Arab Emirates. Sanctioned countries are also excluded.

xStocks themselves entered the market in June 2025 as tokenized versions of U.S. shares and ETFs aimed at eligible non-U.S. customers. The tokens deliver price exposure but do not confer voting rights, dividend rights, or a direct legal claim on the underlying securities. Tax treatment may differ from holding the corresponding assets through a traditional brokerage account.

Market Context for Tokenized Equities

The launch occurs against a backdrop of rapid expansion in tokenized stocks and ETFs. Data cited by Kraken from RWA.xyz shows the distributed value of these instruments has risen to approximately $2.84 billion, compared with roughly $540 million one year earlier. The growth has increased the pool of assets that can potentially be integrated into yield-generating strategies on decentralized platforms.

Kraken positions the xStocks vaults as an extension of its broader tokenized-asset efforts, which previously included an on-chain trading engine supporting dozens of tokenized equities across Ethereum and Solana.

Risk Considerations

The strategy employs leverage by using deposited xStocks as collateral to borrow stablecoins. Sharp declines in the value of the underlying tokens or sudden liquidity shortages can trigger liquidations. Losses from liquidation, bad debt, or severe market moves are shared proportionally among vault participants. Customers may lose some or all of their deposited principal. Neither principal nor rewards are insured or guaranteed by any bank or government program.

Additional risks include smart-contract vulnerabilities across multiple protocols, delays or failures in cross-chain transfers between Ink and Solana, and potential issues with stablecoin pegs or synthetic assets used in the strategy. Kraken’s documentation states that the product depends on several on-chain systems and that technical faults could leave positions exposed during changing market conditions.