Kraken launched xStocks Vault, allowing users to stake tokenized stocks to earn yields

According to The Defiant, Kraken has launched three xStocks vaults, allowing eligible customers to deposit SPYx, QQQx, and NVDAx into the vaults while earning floating returns while retaining exposure to tokenized stocks or ETFs. The vault initially shows an estimated net APY of 2% for SPYx and QQQx, and 1.8% for NVDAx. Kraken charges a 25% performance fee on vault earnings, and the displayed interest rate has already deducted this fee; rewards will be converted into the same type of xStock and automatically reinvested into the customer's balance.

The strategy is designed by Sentora and is responsible for risk management, while Veda provides the vault infrastructure. After customers deposit xStock, Kraken transfers it to an embedded self-custody wallet on Ink, packages it, and deposits it into the Veda vault; Sentora then cross-chain transfers the packaged xStock to Solana and deposits it as collateral in the Kamino lending market. After borrowing stablecoins, it is deployed into selected DeFi strategies, and the returns are ultimately converted back into the deposited xStock. Customers do not need an external wallet or mnemonic phrase but can export the private key; redemption requires a three-day wait for funds to arrive.

Kraken's documentation shows that the strategy uses leverage to generate returns by borrowing stablecoins and lists risks such as smart contracts, liquidity, bad debts, liquidation, cross-chain execution, and downstream assets, with losses shared proportionally among vault users. xStock holders do not have voting rights, dividend rights, or legal claims to the underlying stocks. The vault is currently available to the European Economic Area and other supported markets, while users from the United States, United Kingdom, Canada, Australia, the United Arab Emirates, and sanctioned countries cannot use it.