Kraken Introduces xStocks Vaults for Yield on Tokenized Equities

Kraken has launched three vault products that allow eligible clients to earn variable yield on tokenized equity and ETF assets—SPYx, QQQx and NVDAx—while keeping exposure to the underlying token.

Yield Mechanics

The vaults display an estimated net annual percentage yield (APY) of 2% for SPYx and QQQx and 1.8% for NVDAx. Kraken applies a 25% performance fee on earnings, and the quoted rates are already net of that fee. Rewards are automatically converted back into the same xStock and compounded.

How the Strategy Works

When a client deposits an eligible xStock, Kraken moves it to a self‑custodial wallet on Ink, wraps it for accounting, and places it in a Veda‑managed vault. Sentora acts as the risk manager. The wrapped xStock is then bridged to Solana and posted as collateral in Kamino lending markets, where stablecoins are borrowed and deployed into selected DeFi strategies. Returns are swapped back into the original xStock, increasing the depositor’s token balance rather than providing cash.

Risk Profile

• Smart‑contract and liquidity risks inherent to DeFi protocols.
• Potential bad‑debt or liquidation if collateral value falls sharply.
• Cross‑chain execution and downstream‑asset risks.
• No voting rights, dividend distributions, or legal claim to the underlying shares.
• Not covered by government or bank protection.

Access and Availability

Clients can use Kraken’s interface without an external wallet, though the embedded wallet’s private key can be exported. Withdrawals are allowed at any time but require a three‑day waiting period. The vaults are currently available to users in the European Economic Area and other supported regions, but not in the United States, United Kingdom, Canada, Australia, UAE, or sanctioned countries.