Nasdaq on Monday disclosed a collaboration with Payward, the parent company of crypto exchange Kraken, to advance infrastructure for tokenizing financial assets. Under the agreement, Nasdaq will adopt Payward's xStocks platform to enable institutional clients to move securities from conventional trading systems onto blockchain networks.
Tokenization converts conventional financial instruments - including bank deposits, equities, bonds, funds and real estate - into crypto assets that can be recorded and traded on blockchain ledgers. Nasdaq said the work with Payward will concentrate on the operational aspects of tokenized stocks and exchange-traded products, particularly corporate actions, proxy voting and shareholder engagement.
The exchange operator has previously sought regulatory approval to permit trading in either traditional digital or tokenized form, filing with the Securities and Exchange Commission last September. Nasdaq characterized tokenization as a way to enable a more continuous financial ecosystem and to change how investors access markets and how issuers interact with shareholders.
Commenting on the initiative, Tal Cohen, president of Nasdaq, said: "Tokenization has the potential to unlock the benefits of an always-on financial ecosystem - enhancing how investors access markets, how issuers engage with shareholders." Nasdaq’s statement framed the partnership as part of a broader move by financial market participants to build digital-asset-capable infrastructure.
The announcement comes amid a wave of institutional activity in digital asset infrastructure following the passage of the GENIUS Act last year, though regulators continue to debate further rules. In January, Intercontinental Exchange, the parent of the NYSE, disclosed it was seeking regulatory approval for a blockchain-based platform intended to support 24/7 trading and on-chain settlement of tokenized securities.
Meanwhile, a number of market participants have already introduced or pursued tokenized stock products in various jurisdictions. Robinhood, Gemini and Kraken have launched tokenized stocks in Europe. Coinbase and a startup named Dinaria have sought approval to offer similar tokenized products in the United States.
Market participants remain divided on the role of cryptocurrencies in portfolios, a split that persists even as bitcoin trades near levels it held before the 2024 U.S. presidential election. Nasdaq stressed that its work with Payward is intended to sit alongside established institutional trading infrastructure and to provide a means for clients to move assets to blockchain networks when appropriate.
Key operational goals of the partnership include enabling corporate actions processing, improving proxy voting mechanics and facilitating shareholder engagement for tokenized securities. The scope described by Nasdaq does not expand beyond those capabilities and reflects the firm's stated intent to integrate tokenization into existing market processes.