Stock Market
By Sakamoto Nashi
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How the Lending Actually Works. Assets deposited into the xStocks vaults get lent out through onchain markets.
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Who Can Actually Use It. Kraken made the geographic limits clear. The xStocks vaults are open to eligible clients in the…
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Tokenized Stocks Are Growing Fast. The timing isn't random. The total value of tokenized stocks and ETFs has climbed to roughly $2.
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Kraken just added yield to tokenized stocks. The exchange launched xStocks vaults, letting investors earn returns on tokenized versions of Nvidia and major US ETFs by lending…
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The vaults cover three assets right now: SPYx, which tracks the SPDR S&P 500 ETF; QQQx, which tracks the Invesco QQQ ETF; and NVDAx, the tokenized version of Nvidia stock.
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Under the hood, Veda supplies the infrastructure. Sentora runs the lending strategies.
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Assets deposited into the xStocks vaults get lent out through onchain markets. Kamino on Solana is one of the DeFi venues being used.
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It's a reasonably clean structure. Kraken handles the front end and the custody wrapper, Veda handles the plumbing, and Sentora manages the strategy.
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Yield generation through DeFi lending on tokenized equities is still pretty new territory. Most DeFi markets historically ran on crypto-native collateral — ETH, wrapped Bitcoin,…
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Kraken made the geographic limits clear. The xStocks vaults are open to eligible clients in the European Economic Area and a handful of other select regions.
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See also: Shiba Inu Exchange Inflows Surge 207% as 87 Trillion Tokens Accumulate
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The EEA focus makes sense. Regulatory frameworks there have moved faster on digital assets than in the US or UK, where the legal status of tokenized stocks sitting in DeFi…
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But cutting out the US, UK, Canada, Australia, and UAE in one go does shrink the addressable market significantly.
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The timing isn't random. The total value of tokenized stocks and ETFs has climbed to roughly $2.84 billion. A year earlier, that number sat at about $540 million.
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Kraken's xStocks vaults are a direct play on that growth. The exchange already had the DeFi Earn platform with $800 million in deposits — adding tokenized equity vaults on top of…
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