Nasdaq Partners With Kraken for Tokenized Stocks, Launching 2027

Core Insights - Nasdaq is collaborating with Payward, the parent company of Kraken, to create tokenized equities aimed at enhancing "programmable investor engagement" [1] - The initiative is set to launch in the first half of 2027 and seeks to modernize processes such as corporate actions, shareholder engagement, and proxy voting [2] - Tokenized shares will provide holders with "full legal and regulatory equivalence," where the transfer of the token signifies the transfer of the underlying security [2] Company Developments - Nasdaq's plan builds on a tokenization proposal submitted to the SEC last year, which allows customers to trade securities through traditional digital ownership representations, with or without blockchain support [3] - Payward will develop an "equities transformation gateway" with Nasdaq, utilizing its xStocks framework to enable global trading of tokenized public company shares [4] - Nasdaq President Tal Cohen emphasized that this issuer-sponsored approach aims to empower public companies and improve global access to U.S. equity markets [5] Industry Context - The move by Nasdaq aligns with a broader trend towards tokenized stocks in traditional finance, as evidenced by the NYSE's announcement of a blockchain-based platform for trading tokenized equities [5] - The Intercontinental Exchange, parent company of NYSE, recently invested in crypto exchange OKX at a $25 billion valuation, facilitating the trading of tokenized stocks and derivatives on the NYSE [5]