Kraken launches xStocks vaults with yields on tokenized stocks
RWA Signal Insight
StocksKraken has introduced three xStocks vaults, enabling eligible non-U.S. customers to earn variable yields on tokenized versions of Nvidia shares (NVDAx) and two U.S.-listed ETFs (SPYx and QQQx). These vaults utilize a complex DeFi strategy where deposited assets are moved from Kraken’s Ink layer-2 network to Solana, where they serve as collateral in the Kamino lending market. The generated yields, currently estimated at 2% for SPYx and QQQx and 1.8% for NVDAx, are reinvested into the vault balance after a 25% performance fee. This product highlights the growing trend of bridging traditional equity exposure with decentralized finance yield-generation mechanisms. However, the vaults carry significant risks, including potential liquidation, cross-chain execution failures, and the lack of traditional shareholder rights like voting or dividends. Kraken emphasizes that these tokens are not equivalent to brokerage-held securities and are not insured by government programs. The launch underscores Kraken's ongoing expansion into on-chain securities infrastructure following its previous initiatives with xStocks and planned acquisitions in the sector.
Key points
- Kraken launched vaults for NVDAx, SPYx, and QQQx offering net yields up to 2%.
- Strategy uses Ink and Solana networks to collateralize assets in Kamino lending markets.
- Vaults charge a 25% performance fee and require a three-day withdrawal waiting period.
- Products are unavailable to U.S., U.K., Canadian, and Australian residents.
Background
Kraken is a major global cryptocurrency exchange that has increasingly moved into the RWA space through its xStocks initiative. The platform provides tokenized versions of traditional equities, allowing users to gain price exposure to stocks and ETFs on-chain. These tokens are typically backed by the underlying securities held in custody, though they function as synthetic representations rather than direct equity ownership.