Kraken Launches xStocks Vault..."Lend dormant US stocks to DeFi and earn interest"

▲ Kraken, Tokenized Stocks, DeFi/AI Generated Image

Kraken has expanded the integration of traditional assets and on-chain finance by launching a product that allows users to lend tokenized stocks and ETFs, such as NVIDIA (NVDA), to DeFi and earn additional returns.

According to Cointelegraph on September 14 (local time), Kraken launched xStocks Vault, which offers on-chain returns for certain tokenized stocks and ETFs. The targets are SPYx of SPDR S&P 500 ETF, QQQx of Invesco QQQ ETF, and NVDAx of NVIDIA. Users' deposited assets are lent to the DeFi market to generate returns, which are paid out in the deposited xStocks. Withdrawal requests are processed within 3 days.

This product uses the same infrastructure as Kraken DeFi Earn, which Kraken launched in January. According to Kraken, over $800 million has flowed into the service since its launch. xStocks Vault is technically supported by Veda, while Sentora designs and manages the lending strategies for generating returns.

Deposited assets are lent through DeFi markets such as Solana (SOL)-based Kamino. Sentora sets investment limits for each asset and checks collateral, liquidity, and oracle environments. The service is available to eligible Kraken customers in certain markets, including the European Economic Area, but not in the United States, United Kingdom, Canada, Australia, and the United Arab Emirates.

Kraken's product expansion coincides with the rapidly growing tokenized stock market. According to RWA.xyz data, the decentralized value of tokenized stocks and ETFs has increased more than fivefold to approximately $2.84 billion from about $540 million a year ago. Kraken has not only enabled trading of stocks on the blockchain but also expanded the structure to utilize tokenized assets themselves as a means of generating DeFi returns.

[Article Key Summary]

-Kraken has launched xStocks Vault, allowing users to lend SPYx, QQQx, and NVDAx to the DeFi market to earn returns.

-Over $800 million has flowed into Kraken DeFi Earn since its launch in January, and withdrawal requests are processed within 3 days.

-The decentralized value of tokenized stocks and ETFs has increased more than fivefold in one year, from approximately $540 million to $2.84 billion.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*