According to Kraken's official announcement, the exchange 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. 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 exchange charges a 25% performance fee on earnings generated by the vaults, with deposits and withdrawals carrying no additional platform or Ink network gas fees. Rewards are converted into the same xStock and automatically compounded into the depositor's balance.
As reported by Kraken, after customer deposits, the system transfers assets to an embedded self-custody wallet on Ink, Kraken's Ethereum layer-2 network. The system wraps the token for vault accounting before placing it into infrastructure provided by Veda. Sentora, which designed the strategy and serves as risk manager, then moves the wrapped xStock across chains to Solana, where the asset enters the Kamino lending market as collateral for stablecoin loans. Borrowed stablecoins are assigned to selected decentralized finance strategies that generate the vault's return, with proceeds converted back into the customer's original deposit and added to the position. The product packages an onchain credit strategy inside Kraken's interface, allowing clients to retain xStock exposure without needing external wallets or seed phrases. Clients can request deallocation at any time, but xStocks are returned to their Kraken balance after a three-day waiting period.
According to Kraken's documentation, the leveraged strategy carries several risks including liquidation, smart contract, liquidity, bad debt, and cross-chain risks. The quoted rates are not fixed returns, with the regular APY based on the previous seven days and changing with stablecoin borrowing demand in lending markets. Withdrawals are available at any time but are subject to a three-day waiting period before xStocks reach the customer's Kraken balance. During periods of high demand or market stress, shortage of immediately available liquidity could cause further delays. The strategy uses leverage by borrowing stablecoins against xStock collateral, with client positions remaining xStock-denominated rather than multiplying directional equity exposure. If xStock collateral falls significantly or withdrawal demand rises sharply, positions may need to close quickly, with resulting losses shared proportionally among vault users. Rewards are not guaranteed, and the product is not covered by a government or bank protection program.
As reported by crypto.news, xStocks entered the market in June 2025 with tokenized versions of U.S. shares and ETFs for eligible non-U.S. customers. The original xStocks rollout similarly targeted eligible clients outside the U.S., with company figures showing $3.5 billion in on-chain volume, $25 billion in total trading volume and more than 80,000 holders at the time. Kraken has made the vaults available in the European Economic Area and other supported jurisdictions, excluding the United States, United Kingdom, Canada, Australia, UAE, and sanctioned countries, with U.S. customers remaining excluded from the product. The launch pushes xStocks beyond trading, with xChange previously enabling cross-chain trading for more than 70 tokenized stocks across Ethereum and Solana.
