Nasdaq is partnering with Payward to launch tokenized U.S. equities according to their press release. Payward owns crypto exchange Kraken. Target launch: first half of 2027. An SEC filing confirmed the news.
The tokenized stocks will be blockchain tokens. But they’ll maintain full legal and regulatory status of traditional shares. A token transfer legally equals transferring the underlying security.
Payward will develop an “equities transformation gateway.” It’s using its xStocks framework. Eligible customers across various jurisdictions can trade tokenized versions of publicly listed company shares. Nasdaq calls it “programmable investor engagement.” The goal: improvements in corporate actions, shareholder communication, and proxy voting.
“Issuer-sponsored tokenized equities can make U.S. markets more accessible globally and enable an ‘always-on’ ecosystem,” Nasdaq President Tal Cohen said. The design stems from an SEC filing. It outlined options for digital securities with or without blockchain. Issuers sit at the center of how their equity is represented and managed.
Arjun Sethi of Kraken emphasized the practical benefits for traders. He pointed to “improved collateral efficiency and capital mobility, especially for U.S. customers using these tokenized assets in trading and financing.” The blockchain-based approach could allow round-the-clock trading and settlement. That’s a contrast. Traditional markets have fixed hours and multi-day settlement periods.
The partnership signals intensifying competition. Major exchanges want to modernize equity infrastructure through tokenization. The New York Stock Exchange is already developing a blockchain platform for tokenized equities. Its parent company ICE recently invested in crypto exchange OKX. That supports trading of NYSE-listed tokenized products.
Nasdaq’s move could accelerate mainstream adoption of on-chain equities. It’ll test regulatory frameworks for blockchain-based securities. The 2027 timeline suggests something. Both companies anticipate sufficient regulatory clarity and technical infrastructure. They need it to support issuer-sponsored tokenized shares at scale. Success could pressure competing exchanges and brokers. They’d have to offer similar tokenized access and automated shareholder services. It could reshape how traditional equity markets operate. The financial landscape is increasingly digital.
