Nasdaq has announced a partnership with cryptocurrency exchange Kraken to develop and distribute tokenized versions of public stocks. The initiative aims to integrate blockchain technology into traditional markets, allowing investors to trade these digital assets while retaining standard shareholder rights. The platform is set to launch in early 2027, focusing initially on international markets outside the United States.
Nasdaq is collaborating with Payward, the parent company of Kraken, to create a system for issuing and trading tokenized stocks and exchange-traded products. According to a press release, tokenized shares will provide investors with the same governance rights as traditional shareholders, including voting in proxy ballots and receiving dividends. The partnership emphasizes automating corporate actions, such as dividend payments and proxy voting, through blockchain to enhance efficiency.
Kraken will serve as the distribution partner, making one-to-one tokenized versions of public company shares available to its customers in Europe and other international markets. This builds on a proposal Nasdaq submitted to the U.S. Securities and Exchange Commission in September, seeking approval for tokenized stocks and ETFs to trade alongside conventional shares on the exchange. Both versions would settle through the Depository Trust to ensure interchangeability.
The project utilizes Payward’s xStocks platform, which has processed over $25 billion in transactions since its launch, including $4 billion settled on-chain. It features more than 85,000 holders across supported networks and is designed to connect regulated institutional markets with permissionless decentralized finance networks where approved. Payward Services will manage KYC and AML compliance.
Arjun Sethi, co-CEO of Payward and Kraken, stated that tokenization fundamentally changes how equities function, enabling shares to move between venues and blockchain networks for use in trading, lending, and hedging. Tal Cohen, president of Nasdaq, described the potential for an “always-on financial ecosystem” where investors access markets and issuers engage shareholders innovatively.
This effort aligns with growing global adoption of tokenized equities, as platforms like Robinhood, Gemini, and Coinbase already offer them in Europe. Recently, Kraken’s banking arm gained direct access to the Federal Reserve’s payment system.
