Nasdaq (NDAQ) intends to launch an equity token design, facilitating an approach that allows public issuers to have more control over their tokenized shares. Tokenized equities are blockchain-based tokens created to represent shares in companies, but investors do not become shareholders in ...

Core Viewpoint - Nasdaq is set to launch an equity token design that enhances issuer control, investor experience, and market transparency while modernizing corporate actions and shareholder engagement [1][2]. Group 1: Tokenization and Market Structure - The new equity token design aims to empower public companies by allowing them to maintain control over their shares in a tokenized format, facilitating programmable investor engagement [1][2]. - Nasdaq's initiative aligns with the SEC's classification of tokenized equities as equivalent to traditional equity securities, promoting a coherent market structure that integrates regulated and unregulated environments [2][4]. - The design will ensure that blockchain records are directly integrated into the issuer's official share registry, maintaining legal and regulatory equivalence while preserving market integrity [4][5]. Group 2: Infrastructure and Global Accessibility - Nasdaq's partnership with Payward, the parent company of Kraken, will create an equities transformation gateway, enabling seamless movement between permissioned and permissionless environments while ensuring regulatory compliance [6][7]. - The initiative is expected to enhance market infrastructure, allowing for continuous trading across multiple time zones and expanding the investor base for public equities [3][7]. - The equities transformation gateway will facilitate interoperability between traditional financial systems and decentralized networks, enhancing liquidity and capital mobility [6][7]. Group 3: Future Engagement and Development - Nasdaq plans to engage with various stakeholders, including issuers and regulators, as the token framework evolves, with a focus on voluntary participation and regulatory review [8]. - The program is anticipated to be operational by the first half of 2027, with additional DLT-based services available to issuers [8].