Nasdaq is developing a platform for the eventual issuance and trading of tokenized equities, as the race to build a new financial infrastructure intensifies.
The global stock exchange operator is partnering with Payward, the parent company of crypto exchange Kraken, on the design of equity tokens, which it claims will place issuers at the center of financial tokenization. It is a market set to exceed $9.4 trillion in the coming years, according to research and analytics firm Kavout.
Tokenization, as used in finance, is the digital representation of real-world assets (RWAs), including bonds, stocks, and bank deposits, that can be readily traded using blockchain, or distributed ledger, technology, which underpins crypto assets.
Last year, Nasdaq sought US Securities and Exchange Commission approval to launch tokenized versions of listed stocks and exchange-traded funds, which the regulator approved last month.
Crucially, the proposed tokenization of equities will function under existing regulatory frameworks and safeguard the underlying rights associated with company shares. In practice, this means token holders will enjoy the same benefits as typical shareholders. Nasdaq says it “aims to introduce programmable investor engagement that modernizes the connection issuers have with investors, notably as it relates to proxy-related actions, corporate actions, and governance rights.”
In a prepared statement last month, Tal Cohen, Nasdaq’s president, noted, “This issuer‑sponsored approach for tokenized equity securities is designed to empower public companies and enhance global accessibility to US equity markets.”
Blockchain records will be integrated into the issuer’s official share registry, providing a regulated bridge between on‑chain records and off‑chain identity. Nasdaq plans to harness Payward’s xStocks, which acts as the infrastructure layer that will allow investors to move between permissioned and permissionless environments.
The gateway will be available in jurisdictions worldwide where xStocks is accessible. Nasdaq officials expect their equity token design and related blockchain-based services to become operational in the first half of 2027.
Meanwhile, Nasdaq has also entered a partnership with German exchange operator Boerse Stuttgart’s tokenization settlement platform to facilitate the trading of blockchain-based equities throughout Europe.
