Kraken launches xStocks Vaults for tokenized equities yield generation

Kraken just rolled out a product that makes tokenized stocks do something regular stocks never could: generate DeFi yield while you hold them. The exchange launched three xStocks Vaults for eligible non-US clients on Kraken Pro, covering SPYx, QQQx, and NVDAx, which are tokenized versions of the S&P 500 ETF, Nasdaq-100 ETF, and Nvidia shares respectively. The NVDAx vault offers a variable yield of 8%, and users retain full price exposure to the underlying asset throughout. How the yield actually works The vaults use on-chain strategies that deploy xStocks tokens as collateral within lending and credit markets on Solana, specifically through the Kamino protocol. The vault borrows stablecoins against the deposited tokenized equities, puts those stablecoins to work in yield-generating activities, then swaps the returns back into the original asset. The result is that your SPYx, QQQx, or NVDAx position grows without you ever having to sell or swap anything. Rewards auto-compound directly into the vault share price through a self-custodial embedded wallet. There is one catch: a three-day withdrawal period applies when you want to pull assets out. The xStocks expansion timeline The x...