Nasdaq partners with Kraken to tokenize stocks pending SEC approval

Nasdaq has announced a strategic partnership with Kraken's parent company Payward to develop infrastructure for tokenized stock trading.

“- Key insight: Nasdaq is using Kraken's infrastructure to prepare for tokenizing stocks upon SEC approval of the plan”

American Banker

The global exchange awaits regulatory approval from the SEC for this initiative.

American Banker

According to American Banker, Nasdaq is using Kraken's infrastructure to prepare for tokenizing stocks upon SEC approval.

The collaboration is aimed at creating an equity token design for public companies.

Invezz reports the initiative involves both Payward and Backed, the issuer behind the xStocks ecosystem.

The effort is designed to link regulated stock markets with blockchain platforms.

Decrypt adds that Nasdaq President Tal Cohen emphasized this issuer-sponsored approach empowers public companies.

The partnership aims to enhance global accessibility to U.S. equity markets.

Cohen highlighted the potential to unlock benefits of an always-on financial ecosystem.

Tokenized equities represent traditional shares as digital tokens on blockchain networks.

These tokens offer significant advantages over traditional stock trading systems.

Decrypt

Invezz explains that these tokens can be traded in off-hours with blockchain-based settlement options.

This approach paves the way for 24/7 trading options across capital markets.

American Banker describes tokenized real-world assets as unique digital representations stored on distributed ledgers.

Decrypt provides technical context about developing an 'equities transformation gateway'.

The gateway will be built atop Kraken's xStocks framework for global trading access.

The infrastructure aims to maintain compliance while bridging traditional and decentralized finance.

The Nasdaq-Kraken partnership reflects growing institutional interest in blockchain technology.

“Nasdaq explores tokenized stock trading with Kraken partnership”

Invezz

It represents a significant strategic move to capture market share from retail crypto traders.

American Banker quotes Nic Puckrin, co-founder of Coin Bureau and digital market analyst.

Puckrin noted that partnering with Kraken gives Nasdaq access to retail crypto trader market share.

These traders are particularly open to the idea of 24/7 trading opportunities.

Puckrin observed that 'The crypto industry has been talking about the democratization of finance for years.'

Invezz reports Kraken's involvement follows Payward's acquisition of Backed in December 2025.

Decrypt quotes Arjun Sethi, Co-CEO of Payward and Kraken, on market expansion benefits.

Sethi emphasized the initiative expands access to public markets with limited traditional distribution.

U.S. customers will benefit from greater collateral efficiency and capital mobility.

Nasdaq's tokenization initiative builds on a formal proposal filed with US securities regulators in September 2025.

The exchange works to navigate the regulatory landscape for blockchain-based securities trading.

Decrypt

Invezz reports the initiative builds on a tokenization proposal filed with US regulators in September 2025.

The proposal outlined how listed companies could participate in tokenized markets while retaining oversight.

The programme is expected to launch in the first half of 2027, suggesting a deliberate timeline.

American Banker mentions Kraken became the first crypto exchange to receive regulatory approval.

This indicates Kraken's positioning as a pioneer in compliant digital asset infrastructure.

Decrypt notes Nasdaq's plan builds on its SEC proposal from last year.

The proposal aimed to give customers options for trading securities with or without blockchain backing.

Nasdaq's move comes amid a broader industry-wide push towards tokenized stocks.

“In brief - Nasdaq is partnering with Kraken parent company Payward to develop tokenized equities, built atop its xStocks framework”

Decrypt

Traditional financial institutions are increasingly embracing blockchain technology.

American Banker

Decrypt reports Nasdaq's move comes amid a wider push towards tokenized stocks in the TradFi world.

In January, the New York Stock Exchange announced developing a blockchain-based platform for tokenized equities.

NYSE's parent company Intercontinental Exchange invested in crypto exchange OKX at $25 billion valuation.

This investment enables OKX users to trade tokenized stocks and derivatives from the NYSE.

American Banker notes multiple stock trading platforms are moving forward to tokenize securities.

Financial institutions are pursuing 24/7 trading capabilities for tokenized assets.

The competitive landscape shows exchanges racing to establish dominance in tokenized securities.

The Nasdaq-Kraken partnership represents a potential paradigm shift in global financial markets.

It could create an always-on trading ecosystem that changes how investors access markets.

Decrypt quotes Nasdaq President Tal Cohen on tokenization's potential benefits.

Cohen stated it could unlock benefits of an always-on financial ecosystem.

This would enhance how investors access markets and issuers engage with shareholders.

American Banker references expert analysis about Wall Street giants accessing infrastructure.

Partnerships give traditional firms access to underlying blockchain technology without building it.

Invezz emphasizes Nasdaq ensures public companies remain central to the equity ecosystem.

The exchange balances innovation with maintaining traditional market structures.

Long-term implications include increased efficiency, reduced settlement times, and broader global participation.