TLDR
- Kraken launched xStocks vaults letting users earn yield on tokenized versions of Nvidia and two major US ETFs
- Estimated net APYs are 2% for SPYx and QQQx, and 1.8% for NVDAx during the initial launch period
- Yield is generated by lending assets through DeFi protocols, including Kamino on Solana
- The vaults carry multiple risks including liquidation, smart contract bugs, and cross-chain transfer issues
- US, UK, Canada, Australia, and UAE customers are excluded from the product
Kraken has launched a new product that lets eligible users earn yield on tokenized stocks and ETFs through decentralized finance protocols.
LATEST: ⚡ Kraken has launched xStocks Vaults, allowing eligible users to earn variable yield on SPYx, QQQx and NVDAx, with estimated net APYs of 1.8% to 2%. pic.twitter.com/fmjmfJuR3z
— CoinMarketCap (@CoinMarketCap) September 14, 2026
The crypto exchange introduced three xStocks vaults on September 14, 2026. Users can deposit tokenized versions of the SPDR S&P 500 ETF, the Invesco QQQ ETF, and Nvidia shares to earn returns.
How the Vaults Work
After a user deposits an xStock, Kraken moves the asset to an embedded wallet on Ink, its Ethereum layer-2 network. The token is then transferred across chains to Solana, where it enters the Kamino lending market as collateral for a stablecoin loan.
The borrowed stablecoins are then deployed into DeFi strategies to generate returns. Any earnings are converted back into the original xStock and added to the user’s vault balance automatically.
Veda provides the vault infrastructure, and Sentora designed and manages the lending strategy. Kraken says it does not manage the strategy or control the underlying protocols.
Estimated net annual yields are 2% for the SPY and QQQ vaults and 1.8% for the Nvidia vault. These rates are variable and based on the previous seven days of stablecoin borrowing demand.
Kraken takes a 25% performance fee, which is already deducted from the displayed APY. There are no deposit or withdrawal fees, and no gas fees on the Ink network.
Risks and Restrictions
The vaults use a leveraged structure. The deposited token is used as collateral to borrow stablecoins, which introduces the risk of liquidation if asset prices fall sharply.
Losses from liquidation or bad debt are shared among all users in the affected vault. Kraken warns that customers may lose part or all of their deposit, and neither the principal nor rewards are insured.
Smart contract bugs, stablecoin depegging, and cross-chain transfer delays are also listed as risks. The multi-step process moves assets through several protocols before returns are generated.
Withdrawals are available at any time but take three days to process. During periods of market stress, delays could extend further.
Users do not receive shareholder rights, voting rights, or dividends through xStocks. Kraken advises customers to seek tax guidance in their own jurisdiction.
The vaults are available in the European Economic Area and select other markets. Users in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates are excluded.
The xStocks vaults use the same infrastructure as Kraken DeFi Earn, which launched in January and has attracted more than $800 million in deposits.
The total value of tokenized stocks and ETFs across the market has grown to around $2.84 billion, up from roughly $540 million a year ago, according to RWA.xyz data.
Kraken has also announced plans to acquire Backed Finance, the issuer behind xStocks, and is working with Nasdaq on blockchain-based securities infrastructure.
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