Nasdaq & Kraken Team Up for Tokenized Stocks

Nasdaq and Kraken's parent company, Payward, are collaborating to launch tokenized stock trading, with Nasdaq using Kraken's infrastructure. The aim is to offer 24/7 trading of blockchain-based equities, pending SEC approval, targeting a launch in the first half of 2027. Kraken's xStocks platform will facilitate the movement of tokenized equities between traditional markets and DeFi networks. This partnership seeks to bridge regulated markets with on-chain financial networks, allowing clients to transfer assets between institutional trading systems and decentralized networks while adhering to regulatory standards. Payward Services will manage KYC and AML compliance. Tokenized stocks, representing real-world equities on a blockchain, offer benefits like fractional ownership, faster settlement, and 24/7 trading. They enable the use of stocks as collateral in DeFi, broadening access to stock market investments. The tokenized stock market has surpassed $1 billion in total on-chain value, with significant activity concentrated on Ondo Finance and Backed Finance's xStocks. Nasdaq's framework is designed to maintain issuer control, existing regulations, and shareholder rights, including voting and dividends. The exchange submitted a proposal to the SEC in September 2025 to allow tokenized and traditional shares to trade side-by-side. This collaboration aims to create an "always-on financial ecosystem," enhancing investor access and issuer engagement.