Nasdaq Partners Payward/Kraken to Accelerate Tokenization Era Where Equities Become Programmable, Borderless and Always Accessible 

Nasdaq has partnered with Payward, the parent company of the cryptocurrency exchange Kraken to develop infrastructure for tokenized equities, aiming to enable 24/7 trading of blockchain-based versions of publicly listed stocks and ETFs.

Nasdaq is advancing its plan; proposed to the SEC in September 2025 to allow tokenized versions of its listed stocks and exchange-traded products (ETPs) to trade on its markets, with settlement in token form via the Depository Trust & Clearing Corp. (DTCC). The focus includes preserving corporate governance rights—such as proxy voting, dividends, and shareholder engagement—for token holders, giving issuers more control over tokenized shares.

Payward will design a gateway to connect regulated markets with on-chain and blockchain networks. This uses Kraken’s xStocks framework; a tokenized equities platform as the foundation, enabling seamless movement of tokenized securities between traditional finance (TradFi) systems and decentralized markets.

Kraken will act as a key distribution partner, especially for non-U.S. clients (targeting Europe initially), providing global access outside the U.S. The setup targets 24/7 trading (always-on access), instant settlement, fractional ownership, and full interoperability with traditional shares (same CUSIP identifiers).

This bridges the gap between stock market hours and crypto’s continuous trading model. The framework is expected to launch in early 2027, pending regulatory approval primarily from the SEC. This builds on Kraken’s existing xStocks platform (launched via its acquisition of Backed Finance in late 2025), which already offers tokenized U.S. stocks/ETFs trading 24/5 on chains like Ethereum and Solana, with over $25 billion in volume reported earlier in 2026.

Kraken has also rolled out regulated perpetual futures on tokenized equities for non-U.S. users, adding leverage and 24/7 derivatives access. This move signals accelerating convergence between traditional stock exchanges and blockchain technology, driven by growing interest in real-world asset (RWA) tokenization.

It follows similar efforts by competitors like ICE (NYSE parent) exploring blockchain-based 24/7 platforms. U.S. investors are currently excluded from many of these tokenized offerings due to regulatory constraints, with availability focused internationally. This is a significant step toward more accessible, efficient, and continuous global equity markets.

This collaboration builds on Nasdaq’s September 2025 SEC proposal and Kraken’s existing xStocks platform which has already achieved over $25 billion in transaction volume and $4+ billion settled on-chain, with 85,000+ unique holders. It aims to create regulated tokenized versions of Nasdaq-listed stocks and ETFs, with full interoperability (same CUSIP identifiers), instant settlement, fractional ownership, and preservation of shareholder rights.

The launch is targeted for the first half of 2027, pending SEC approval, with Kraken serving as a key gateway and distribution partner—primarily for non-U.S. investors starting in Europe. Traditional stock markets close daily and on weekends/holidays. Tokenized equities could enable continuous, always-on trading, allowing global investors to react to news, earnings, or events in real time—similar to crypto markets.

This could boost liquidity during off-hours and reduce timing risks. Instant settlement eliminates T+1/T+2 delays, lowers costs through blockchain, and enables fractional shares—democratizing access to high-value stocks for smaller investors worldwide.

The “equities transformation gateway” allows seamless movement between regulated (permissioned) markets and permissionless blockchain/DeFi ecosystems, potentially enabling tokenized stocks as collateral in lending, yield farming, or derivatives. U.S. retail/institutional investors are largely excluded due to regulatory hurdles, focusing availability internationally.

Issuers gain more control over tokenized shares; direct integration into share registries for governance and transparency, potentially streamlining corporate actions and shareholder engagement. This pressures rivals and signals Wall Street’s shift toward hybrid models. It could erode traditional brokers’ moats as crypto platforms capture equity trading volume.

Continuous trading may lead to more efficient global pricing, though it risks increased volatility from 24/7 exposure to global events. A major exchange like Nasdaq actively building tokenized infrastructure accelerates mainstream adoption. It bridges TradFi and crypto, potentially unlocking trillions in equity value on-chain.

Boosts demand for compliant blockchain layers, oracles for pricing, cross-chain bridges, and regulated gateways. Platforms like Kraken’s xStocks (built on networks such as Solana/Ethereum) stand to benefit from increased volume and integrations. Aligns with SEC’s 2026 guidance treating tokenized equities equivalently to traditional shares, potentially easing approvals and encouraging more institutions to enter RWAs.

24/7 trading might amplify flash crashes or contagion from crypto-style events into equities. Success requires building deep liquidity, preventing fragmentation, and ensuring compliance (KYC/AML via partners like Kraken). This partnership accelerates the “tokenization era,” where equities become programmable, borderless, and always-available assets.

It blurs lines between stock trading and crypto, positioning blockchain as core market infrastructure rather than a niche. If executed well, it could transform global capital markets—starting internationally—while highlighting the growing institutional embrace of on-chain finance.