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      Kraken Introduces xStocks Vaults for Tokenized Equity Borrowing

      Kraken has launched three new vaults that allow eligible clients to earn variable yields on tokenized equities, specifically SPYx, QQQx, and NVDAx. The vaults are designed to enable users to retain exposure to the tokenized equity or exchange-traded fund they deposit while earning an estimated net annual percentage yield (APY) of 2% for SPYx and QQQx, and 1.8% for NVDAx. A performance fee of 25% is charged on vault earnings, with the displayed rates already accounting for this fee. Rewards generated are automatically compounded into the depositor's balance in the same xStock.

      The vaults utilize a strategy developed by Sentora, which manages the associated risks, while Veda provides the necessary infrastructure. When clients deposit an eligible xStock, Kraken transfers it to a self-custodial wallet, wraps it for vault accounting, and deposits it into a Veda vault. The wrapped xStock is then bridged to the Solana blockchain and used as collateral in Kamino lending markets, where stablecoins are borrowed and deployed into selected decentralized finance (DeFi) strategies. This approach allows clients to accrue additional xStock rather than receiving cash or stablecoins.

      The launch of these vaults marks a significant expansion of Kraken's xStocks offerings, which previously enabled cross-chain trading for over 70 tokenized stocks. Currently, the new vaults support only SPYx, QQQx, and NVDAx, utilizing Ink and Solana for execution. However, clients should be aware that the vault strategy employs leverage, which introduces additional risks, including smart contract and liquidity risks. Kraken has made it clear that the product does not provide ownership rights to the underlying shares and is not covered by government or bank protection programs. At this time, the vaults are available in the European Economic Area and other supported markets, but not in the U.S., UK, Canada, Australia, UAE, or sanctioned countries.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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