Nasdaq teams up with Kraken to expand tokenization infrastructure

Core Insights - Nasdaq is collaborating with Payward, the parent company of Kraken, to develop tokenization infrastructure aimed at blockchain-based equities [1] - The partnership will utilize Payward's xStocks platform to facilitate the movement of securities from institutional trading to blockchain networks [1] - Nasdaq's plans for tokenization will focus on corporate actions, proxy voting, and shareholder engagement [1] Business Developments - Nasdaq has sought approval from the Securities and Exchange Commission to allow trading in both traditional digital and tokenized forms [1] - Institutional adoption of digital asset infrastructure has progressed following the passage of the GENIUS Act, with ongoing discussions about further regulation [1] - Other companies like NYSE parent Intercontinental Exchange and Robinhood have also been pursuing blockchain-based trading platforms and tokenized stocks [1] Market Context - The interest in tokenization is growing, with several firms, including Kraken and Gemini, already launching tokenized stocks in Europe [1] - The cryptocurrency market remains volatile, with Bitcoin prices fluctuating around pre-2024 presidential election levels, leading to mixed investor sentiment regarding cryptocurrencies [1] - The potential benefits of tokenization include creating an always-on financial ecosystem that enhances market access for investors and engagement for issuers [1]