Nasdaq is moving deeper into blockchain-based finance through a partnership with crypto exchange Kraken aimed at developing infrastructure for tokenized stock trading.
The initiative reflects growing interest among global exchanges in combining traditional equity markets with decentralised networks.
The exchange operator announced that it plans to support tokenized equities while preserving issuer control and regulatory oversight.
The collaboration involves Payward, the parent company of Kraken, and Backed, the issuer behind the xStocks ecosystem.
The effort is designed to link regulated stock markets with blockchain platforms so tokenized shares can move between both systems.
Nasdaq said the approach is intended to maintain compliance, protect issuers and preserve price integrity while expanding global access to US equity markets.
Tokenized equities framework
Tokenized equities represent traditional shares as digital tokens on blockchain networks.
Supporters argue that the model could allow faster settlement, broader investor participation, and trading outside conventional market hours.
Nasdaq’s initiative builds on a tokenization proposal the exchange filed with US securities regulators in September 2025.
The proposal outlined how listed companies could participate in tokenized markets while retaining oversight of shareholder structures and corporate governance.
The programme is designed to ensure that public companies remain central to the equity ecosystem even as financial infrastructure evolves through blockchain technology.
Kraken’s involvement comes after its parent company Payward acquired Backed, the issuer behind the xStocks platform, in December.
Gateway linking financial systems
The collaboration focuses on creating an equities transformation gateway that connects Nasdaq’s market infrastructure with the xStocks ecosystem.
The gateway aims to create interoperability between traditional financial systems and decentralised blockchain networks.
Through this framework, tokenized equities would be able to move between regulated exchanges and global on-chain markets while maintaining issuer rights and regulatory safeguards.
Nasdaq said the initiative is structured as an issuer-sponsored model.
Companies listed on the exchange would be able to participate voluntarily as the tokenized framework develops.
The exchange plans to work with additional issuers, transfer agents, regulators, market infrastructure providers and industry participants as the project evolves.
Rollout planned for 2027
Nasdaq expects the programme to become operational in the first half of 2027.
Additional services related to tokenized equities are also expected to become available to issuers during that period.
Tal Cohen, president of Nasdaq, said tokenization could help create a more continuous financial system by expanding how investors access markets and how companies interact with shareholders.
The company said the issuer-centred structure is designed to strengthen the connection between public companies and investors while increasing global access to US equities.
Competition grows in tokenized markets
Nasdaq’s move comes as exchanges and crypto firms compete to build infrastructure for tokenized securities.
Intercontinental Exchange recently invested in crypto exchange OKX as part of a project to introduce tokenized stocks linked to companies listed on the New York Stock Exchange.
The project aims to bring NYSE-listed tokenized shares to the exchange in the second quarter of 2026.
The race among exchanges and digital asset platforms highlights how tokenization is becoming a key area of development as financial institutions explore new ways to connect traditional capital markets with blockchain-based trading systems.
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