Kraken Turns Tokenized Stocks Into Yield-Bearing DeFi Collateral

Kraken has opened onchain yield vaults for SPYx, QQQx and NVDAx. Launch APYs are 2% for SPYx and QQQx and 1.8% for NVDAx, net of fees. The xStocks serve as collateral while borrowed

• Kraken has launched yield vaults for tokenized stocks (SPYx, QQQx, NVDAx), offering APYs of 1.8%-2% by using them as collateral in DeFi strategies.
• This innovation allows investors to retain equity price exposure while generating additional yield, but introduces protocol and liquidity risks, including potential liquidation.
• The success of these vaults will depend on attracting capital and maintaining attractive yields that justify the added risks, with initial availability limited to certain regions outside the US.

Topics: Asset types, Integration with defi, Scalability, Financial instruments, Rwa collateral lending, Institutional capital inflows

Tags: #kraken #tokenizedstocks #yieldvaults #deficollateral #spyx #qqqx #nvdax #apy #onchain #liquidationrisk

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Kraken Adds DeFi Yield on Tokenized Stocks and ETF Assets

Kraken has rolled out new onchain yield vaults that let eligible customers earn returns on tokenized stocks and exchange-traded funds (ETFs). The exchange says its xStocks vaults will lend deposited assets through decentralized finance (DeFi) protocols, distributing the resulting...

• Kraken has launched 'xStocks' vaults allowing eligible customers to earn yield on tokenized stocks and ETFs by lending them through DeFi protocols.
• The initial offerings include tokenized versions of SPDR S&P 500 ETF (SPYx), Invesco QQQ ETF (QQQx), and Nvidia (NVDAx), with yield paid in xStocks.
• Availability is restricted to the European Economic Area and certain other jurisdictions, excluding the US, UK, Canada, Australia, and UAE, reflecting ongoing regulatory scrutiny of tokenized assets.

Topics: Asset types, Institutional adoption, Integration with defi, Financial instruments, Asset manager initiatives, Rwa collateral lending

Tags: #kraken #tokenizedstocks #etfs #defiyield #xstocks #spyx #qqqx #nvdax #onchainlending #europeaneconomicarea

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