Nasdaq on Monday announced a partnership with Payward, the parent company of cryptocurrency exchange Kraken, to develop infrastructure for tokenized financial assets — a move that signals growing institutional interest in bringing traditional securities onto blockchain networks.
The collaboration aims to position the exchange operator at the center of an emerging market for blockchain-based equities and digital financial instruments, as global exchanges and fintech firms race to build systems that allow traditional assets to be traded in tokenized form.
Tokenization refers to the conversion of financial assets — including stocks, bonds, bank deposits, funds, and even real estate — into digital tokens that can be issued and traded on blockchain networks. The technology allows assets to move more quickly between investors and could potentially enable continuous trading outside traditional market hours.
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Exchanges race toward blockchain markets
Under the partnership, Nasdaq plans to integrate Payward’s xStocks platform into its infrastructure, enabling institutional clients to move securities from traditional trading systems onto blockchain networks.
The initiative is seen as part of a broader push by major exchanges to modernize financial market infrastructure using distributed ledger technology.
In September, Nasdaq sought approval from the U.S. Securities and Exchange Commission to allow certain securities to trade in either traditional digital form or tokenized form, a proposal that would give market participants the flexibility to settle transactions on blockchain networks.
The project also aligns with regulatory momentum in the United States following the passage of the GENIUS Act last year, which accelerated institutional adoption of digital asset infrastructure and opened the door for further regulatory frameworks governing tokenized securities.
Other major exchanges are pursuing similar strategies. Intercontinental Exchange, the parent company of the New York Stock Exchange, said earlier this year that it is seeking regulatory approval for a blockchain-based platform that would allow 24-hour trading and on-chain settlement of tokenized securities.
Several fintech platforms have already begun testing the concept internationally. Companies including Robinhood, Gemini, and Kraken have launched tokenized stocks in European markets, while Coinbase and blockchain startup Dinari are pursuing approval to offer similar products in the United States.
Toward an “always-on” financial system
Nasdaq’s latest partnerships suggest the exchange sees tokenization not simply as a cryptocurrency experiment but as a structural shift in how financial markets may operate.
In addition to its agreement with Payward, Nasdaq said it is collaborating with Boerse Stuttgart to integrate its tokenized settlement platform, enabling trading of blockchain-based equities across European markets.
The initiative will initially focus on corporate actions and shareholder services, including proxy voting, dividend processing, and shareholder engagement — areas where blockchain-based records could improve efficiency and transparency.
Tal Cohen, president of Nasdaq, said tokenization could reshape market access and investor interaction with publicly traded companies.
“Tokenization has the potential to unlock the benefits of an always-on financial ecosystem — enhancing how investors access markets, how issuers engage with shareholders,” Cohen said.
Crypto debate continues among investors
Despite growing institutional interest in blockchain infrastructure, investor sentiment toward cryptocurrencies remains divided.
The price of Bitcoin has hovered around levels seen before the 2024 election victory of Donald Trump, reflecting ongoing debate about the role of digital assets in diversified portfolios.
Supporters argue that tokenization could modernize financial markets by enabling faster settlement, reducing intermediaries, and allowing fractional ownership of assets. Skeptics, however, question whether blockchain technology offers meaningful advantages over existing financial systems and warn that regulatory uncertainties could slow adoption.
For major exchanges like Nasdaq, the strategy appears to be one of preparation rather than speculation — building infrastructure now in anticipation of a future where tokenized securities may coexist alongside traditional financial assets.