Kraken has opened three vaults that pay variable yield on tokenized stocks SPYx, QQQx and NVDAx while depositors keep their price exposure. The strategy borrows stablecoins against the tokenized shares on Solana's Kamino lending markets, and Kraken flags smart-contract, liquidity and liquidation risks alongside the reward.
Kraken has launched three vaults that let eligible clients earn variable yield on SPYx, QQQx and NVDAx while retaining exposure to the tokenized equity or ETF they deposited. The xStocks vaults display an estimated net APY of 2% for SPYx and QQQx and 1.8% for NVDAx at launch. Kraken charges a 25% performance fee on vault earnings, and the displayed rate is already net of that fee.
How the Yield Is Generated
When a client allocates an eligible xStock, Kraken sends it to an embedded self-custodial wallet on Ink, wraps it for vault accounting, and deposits it into a Veda vault. Sentora designed the strategy and acts as risk manager, while Veda supplies the vault infrastructure.
Sentora then bridges the wrapped xStock to Solana and posts it as collateral in Kamino lending markets, where the strategy borrows stablecoins against the position and deploys them into selected DeFi strategies. Returns are swapped back into the deposited xStock, so a SPYx holder accrues more SPYx rather than cash or stablecoins.
The launch extends xStocks beyond trading. In March, xChange enabled cross-chain trading for more than 70 tokenized stocks across Ethereum and Solana, and the new vaults initially cover only SPYx, QQQx and NVDAx. As of launch, the xStocks platform reported over $800 million in assets under management.
A Fee, a Waiting Period and Added Risk
Deallocation can be requested at any time, but Kraken returns the xStocks to a client's balance after a three-day waiting period. Kraken lists smart contract, liquidity, bad-debt, liquidation, cross-chain execution and downstream-asset risks; if xStock collateral falls significantly or withdrawal demand rises sharply, positions may need to close quickly, and losses are shared proportionally among vault users. Rewards are not guaranteed, and the product is not covered by a government or bank protection program.
Kraken's risk disclosure says xStock holders have no voting rights, distribution entitlements or legal claim to the underlying stock, and they carry operational and credit risk tied to Kraken, issuer Backed and the institutions holding the backing assets. At launch, 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.
Sources: The Defiant, Crypto Briefing, Crypto News Flash
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