Nasdaq has partnered with crypto exchange Kraken to develop infrastructure designed to support tokenized stocks, marking another step toward integrating traditional financial markets with blockchain technology.
The project is being developed together with Payward and its subsidiary Backed, which issues tokenized shares known as xStocks. The initiative aims to create a technological framework that allows tokenized equities to operate across both conventional financial systems and blockchain networks.
According to Nasdaq President Tal Cohen, tokenization could expand access to financial markets by enabling faster transactions and continuous trading availability. The initiative is part of Nasdaq’s broader strategy to modernize equity market infrastructure through digital technologies.
Infrastructure Designed to Bridge Financial Systems
At the center of the project is an infrastructure layer referred to as an equities transformation gateway. The system is intended to allow tokenized shares to move between conventional capital markets and blockchain networks while maintaining regulatory compliance.
The platform will also be designed to preserve issuer rights and ensure that companies maintain control over their shares even after they are tokenized. Accurate price discovery and compatibility between traditional financial systems and decentralized networks are key technical priorities for the project.
By building a bridge between legacy market infrastructure and blockchain platforms, the initiative seeks to support the broader adoption of tokenized securities within regulated financial environments.
Launch Target Set for 2027
Nasdaq plans to gradually expand participation in the project by inviting issuers, transfer agents, regulators, and financial market infrastructure providers. Participation will remain voluntary for companies interested in experimenting with tokenized equity markets.
The exchange expects the platform to begin offering services to issuers during the first half of 2027. The initiative builds on earlier efforts by Nasdaq to explore tokenized assets, including proposals submitted to US regulators in 2025.
Competition among exchanges to develop tokenized equity trading infrastructure has intensified in recent months. Major financial institutions and market operators are increasingly evaluating blockchain-based solutions that could improve settlement efficiency and expand global investor access to capital markets.