Nasdaq, Kraken Developing Gateway Connecting Tokenized Equities With Blockchain Networks

Kraken Teams With Nasdaq on Tokenized Stock Infrastructure

A new gateway linking tokenized equity markets with decentralized blockchain networks is being developed through a partnership between Payward and Nasdaq, combining Kraken’s xStocks framework with Nasdaq’s regulated market infrastructure. The system is designed to enable tokenized equities to move between permissioned institutional markets and permissionless blockchain ecosystems in eligible jurisdictions.

The initiative will support Nasdaq’s equity token design, a framework expected to become operational in the first half of 2027 that aims to tokenize equities while preserving issuer control, existing regulatory frameworks, and the underlying rights associated with company shares. Arjun Sethi, Co-CEO of Payward and Kraken, stated in a March 9 announcement:

“Tokenization upgrades market infrastructure at the asset layer by allowing equities to exist as programmable financial instruments that can operate across both regulated capital markets and open blockchain networks.”

“Today, most equities sit inside brokerage systems where their utility is largely limited to directional exposure and, in some cases, broker-specific margin arrangements,” the executive added.

Within the architecture, xStocks will function as the infrastructure layer supporting the permissionless ecosystem, enabling tokenized equities to interact with open blockchain networks while remaining aligned with securities traded within regulated markets. The gateway is designed to allow clients in eligible jurisdictions to swap tokenized equities between regulated market environments and decentralized finance networks.

Payward Services will provide KYC and AML onboarding for tokenized equities through the Kraken platform to support compliance requirements in relevant jurisdictions. In areas where xStocks trading is available, Payward will initially serve as the primary settlement layer for transactions tied to Nasdaq’s equity token design. Payward said that since launching less than a year ago, xStocks have generated more than $25 billion in total transaction volume, including more than $4 billion reported as settled on-chain, with over 85,000 unique holders across networks supported by the platform.

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FAQ 🧭

• Why does the Payward and Nasdaq partnership matter for investors?
  It could expand access to tokenized equities that move between traditional markets and blockchain networks.
• What are tokenized equities in Nasdaq’s planned framework?
  They are blockchain-based representations of company shares designed to preserve ownership rights and regulatory compliance.
• How does Kraken’s xStocks infrastructure fit into the system?
  xStocks will support the blockchain layer, allowing tokenized equities to interact with decentralized finance networks.
• What signals adoption momentum for tokenized equities so far?
  xStocks have already processed more than $25 billion in transaction volume with tens of thousands of holders.