Nasdaq is working with Kraken parent company Payward to build infrastructure for issuing and trading tokenized versions of stocks and exchange-traded products, according to a report by The Wall Street Journal.
Key Takeaways
Nasdaq–Kraken Partnership: Nasdaq will collaborate with Payward, Kraken’s parent company, to develop tokenized stock trading infrastructure.
Blockchain-Based Shares: Tokenized stocks would represent 1:1 versions of publicly listed shares.
Investor Rights Preserved: Holders would retain the same rights as traditional shareholders, including dividends and voting.
International Distribution: Kraken would distribute tokenized equities primarily to customers outside the U.S.
The initiative aims to bring traditional equities onto blockchain rails while preserving the same legal rights as conventional shares. Tokenized stocks would provide investors with identical corporate governance rights – including dividend payments and proxy voting – while automating many administrative processes using blockchain technology.
Tokenized Stocks With Full Shareholder Rights
Under the proposed structure, tokenized equities would mirror conventional shares while existing in digital form on blockchain infrastructure.
Investors would still be entitled to dividends and voting rights in corporate decisions, ensuring the tokenized versions remain economically and legally equivalent to traditional stocks.
Nasdaq said blockchain technology could also streamline corporate actions—such as dividend distributions and proxy voting—by automating processes that are currently handled through complex back-office systems.
Kraken to Distribute Tokenized Shares Internationally
Kraken will act as a distribution partner for the initiative through its parent company Payward.
Tokenized shares would be made available primarily to Kraken users outside the United States, particularly across European and international markets where regulatory frameworks for digital assets are evolving more quickly.
The arrangement would allow investors to access blockchain-based versions of public equities through crypto-native platforms.
Nasdaq Seeks SEC Approval for Tokenized Listings
The partnership builds on a proposal Nasdaq submitted to the U.S. Securities and Exchange Commission in September requesting approval to allow tokenized versions of listed stocks and exchange-traded products to trade alongside traditional shares.
Under that framework, both tokenized and conventional securities would settle through the Depository Trust & Clearing Corporation infrastructure, ensuring the two versions remain fully interchangeable.
Growing Push Toward Tokenized Markets
The Nasdaq–Kraken effort reflects a broader industry push to bring traditional financial assets onto blockchain networks.
Last week, Intercontinental Exchange, the parent company of the New York Stock Exchange, made a strategic investment in
OKX, valuing the crypto exchange at roughly $25 billion, alongside plans to develop tokenized stock and crypto futures products.
If approved, Nasdaq’s platform could mark one of the most significant integrations yet between traditional stock exchanges and blockchain-based financial infrastructure.
