Kraken launches xStocks vaults with yields on tokenized stocks

Kraken has launched three xStocks vaults offering estimated net yields of up to 2% on tokenized versions of Nvidia shares and two U.S.-listed exchange-traded funds. Summary Eligible users can deposit SPYx, QQQx, or NVDAx and receive rewards in the same xStock. Kraken displays estimated net APYs of 2% for SPYx and QQQx and 1.8% for NVDAx during the initial launch period. The leveraged strategy carries liquidation, smart contract, liquidity, bad debt, and cross-chain risks. According to Kraken’s official announcement, eligible customers can earn variable on-chain yields on SPYx, QQQx and NVDAx while retaining exposure to the underlying assets’ prices. SPYx tracks the SPDR S&P 500 ETF Trust, while QQQx follows the Invesco QQQ Trust and NVDAx provides tokenized exposure to Nvidia shares. Kraken’s product page shows an estimated net annual percentage yield of 2% for SPYx and QQQx, compared with 1.8% for NVDAx during the initial rollout. Kraken charges a 25% performance fee on earnings generated by the vaults. The exchange has already deducted the charge from the APY displayed to customers, while deposits and withdrawals carry no additional platform or Ink network gas fees, according...