Cryptocurrency exchange Kraken has just launched a new product that enables registered users to earn attractive passive returns on TradFi assets that normally generate no yield—in other words, on “non-productive assets.” The initiative was created in collaboration with xStocks, which supplies its tokenized assets to the exchange, and numerous other protocols from the DeFi ecosystem.

The product is called “xStocks Vaults” and—for now—is limited to strategies based on SPYx, QQQx and NVDAx, the tokenized versions that respectively replicate exposure to the S&P 500, Nasdaq-100 and Nvidia. However, Kraken may extend the section to other indices and stocks in the future as the RWA market grows.

Kraken launches xStocks Vaults: returns on tokenized assets

Just one month ago, Kraken brought 7,000 US stocks to Europe through xStocks, expanding the list of securities available to users in the European Economic Area, including Italy. Yesterday, the established crypto exchange—which has served the sector since 2013—introduced the so-called Vaults for certain eligible xStocks assets, taking another step toward integrating DeFi and traditional finance.

How does this product work? Users who hold SPYx, QQQx or NVDAx can deposit these assets into a Vault and earn passive returns of up to 2%, while naturally maintaining exposure to the price of the underlying security.

Your xStocks can now earn rewards. @xStocksFi Vaults are live on Kraken.

Holding xStocks of the S&P500, Nasdaq-100, or NVIDIA? Deposit in a vault and earn up to 2% APY, while you stay fully invested.

Explore Vaults → https://t.co/bkLaKumVvX pic.twitter.com/mSxoTyoMXu

— Kraken (@krakenfx) September 14, 2026

The advantage over the TradFi world is that State Street’s SPY ETF, the Nasdaq 100 and Nvidia generally do not offer interest to holders, whereas on Kraken they effectively become productive assets through the implementation of certain DeFi strategies. To be precise, all three do pay dividends to shareholders, but these percentages are far lower than those paid by Kraken.

Where does the yield come from?

This is the key question every investor should ask whenever an opportunity arises to earn yield on assets that generally offer no rewards.

For Kraken’s xStocks, the mechanism works as follows: users’ assets are wrapped and then deposited into an on-chain vault managed by Veda. The same coins are then used as collateral with DeFi protocols such as Kamino to borrow stablecoins, which are in turn deployed in yield-generating strategies.

The proceeds are periodically converted into the deposited xStock and automatically reinvested in the Vault, increasing the compounding effect. Several operators work behind this complex structure to make the system function: Veda provides the Vaults’ on-chain infrastructure, Sentora defines the strategy and manages risk, while Chainlink provides interoperability between Solana and other chains.

It is important to emphasize that the returns offered by Kraken are not fixed, which would be impossible to guarantee in a market as dynamic as DeFi lending and borrowing. The Vaults set an estimated interest rate ranging from 1.8% to 2%, although this may vary depending on market conditions.

In any case, the yield target appears fairly easy to reach without having to pursue risky strategies that would entail significant risks. Moreover, the three tokenized assets in question are typically less volatile than cryptocurrencies, making their use as collateral a relatively safer operation.

Kraken aims to become a “universal exchange”

Kraken is no longer simply a cryptocurrency exchange. It is evolving and maturing toward the concept of a complete financial infrastructure comprising a range of services and products spanning trading and custody, tokenized assets and, now, on-chain yield strategies.

The platform’s ultimate goal is to provide end users with everything they need to build a well-rounded investment portfolio, without limiting them to cryptocurrencies or a few other assets, while also incorporating sections for earning passive interest. Blockchain and decentralized finance do the rest, offering the best conditions for pursuing this mission at contained costs and with all the resulting operational advantages.

Kraken is also a platform that lends money to traders for their operations: here is Francesco Galella’s latest guide explaining how Kraken Prop works.