Digital Finance & Tokenization▲
Kraken Introduces xStocks Vaults, a Yield Feature Offering Up to 2% Annualized on Tokenized Stocks and ETFs
Crypto exchange Kraken announced on September 14 that it has introduced xStocks Vaults, a DeFi-based yield feature, for holders of xStocks, the tokenized stocks and ETFs it offers. Users who deposit eligible tokens they hold can earn rewards from yield strategies run through decentralized finance, with an estimated yield of up to 2% annualized after fees. The eligible tokens are SPYx, which tracks an S&P 500 ETF; QQQx, which tracks a Nasdaq 100 ETF; and NVDAx, which tracks Nvidia shares. Deposited tokens are used as collateral, and borrowed stablecoins are directed into DeFi yield strategies, allowing users to earn rewards while maintaining exposure to the price movements of the corresponding stocks and ETFs. Withdrawals can be requested at any time but take three days to complete, and because the United States, the United Kingdom, Canada and others, along with Japan, are designated as regions where the service is not offered, residents of Japan cannot use this feature. Kraken introduced DeFi yield features for stablecoins in January and for Bitcoin in May, and this time it has expanded the offering to tokenized stocks and ETFs.