Nasdaq is partnering with Payward, the parent company of crypto exchange Kraken, to develop tokenized equities. This initiative, set to launch in the first half of 2027, aims to "modernize processes" including corporate actions, shareholder engagement, and proxy voting. Tokenized shares will offer full legal and regulatory equivalence, with token transfers representing transfers of the underlying security.
The plan builds on Nasdaq's tokenization proposal filed with the SEC, which allows for trading securities via digital representation of ownership, with or without blockchain backing. Payward will develop an "equities transformation gateway" atop its xStocks framework, enabling customers globally to trade tokenized versions of public company shares.
Nasdaq President Tal Cohen stated that this issuer-sponsored approach for tokenized equity securities is designed to empower public companies and enhance global accessibility to U.S. equity markets. Arjun Sethi, Co-CEO of Payward and Kraken, added that the initiative expands access to public markets where traditional distribution has been limited for international customers.
This move aligns with a broader trend towards tokenized stocks in traditional finance. The NYSE is also developing a blockchain-based platform for trading tokenized equities.