-
Payward (parent of Kraken) has partnered up with Nasdaq in order to create infrastructure that links tokenized stocks and blockchain networks.
-
The system uses the xStocks Framework to allow tokenized equities to move between regulated markets, and DeFi networks.
-
Nasdaq intends to launch its tokenized stock infrastructure in the first half 2027.
Payward, the parent company of Kraken and a global crypto infrastructure firm, has partnered up with Nasdaq in order to build infrastructure linking tokenized stock exchanges with blockchain networks.
The partnership focuses primarily on the xStocks Framework, which will serve as an open infrastructure to support Nasdaq’s planned tokenized equities. The system is designed to allow tokenized shares between traditional regulated markets, and decentralized blockchain networks where the technology can be used.
Building a bridge between Wall Street and DeFi
Payward and Nasdaq have formed a partnership to develop an “equity transformation gateway”. This gateway connects permissioned, regulated stock markets with permissionless, decentralized finance networks.
The architecture allows tokenized securities to interact with open networks of blockchains while remaining tied to the underlying securities in regulated markets. This means that investors in eligible jurisdictions can move tokenized stocks from institutional trading environments to blockchain-based financial applications.
The gateway will also include compliance controls. Payward Services, through the Kraken platform, will provide onboarding procedures including Know-Your Customer (KYC), Anti-Money Laundering Checks (AML), and other regulatory requirements.
xStocks Adoption Surpasses $25 Billion in Volume
The initiative builds on the increasing adoption of xStocks which offers tokenized exposure to publicly-traded equities in blockchain ecosystems.
Since launching xStocks less than a month ago, the total volume of transactions has exceeded $25 billion, including more than $4 billion that was settled directly on-chain. The ecosystem has over 85,000 unique holders on supported networks.
Payward will also act as the foundational layer of settlement for Nasdaq tokens during the initial phase.
Related: Kraken Gains Access to Federal Reserve Payment System for the First Time for Crypto Firm
Nasdaq’s New Tokenized Equity Model
The initiative supports Nasdaq’s new issuer-focused model of tokenization, which places public companies at its center.
The design is intended to maintain traditional market protections such as price discovery and transparency, as well as investor rights, but also allow shares to exist on blockchain networks as programmable digital asset. This model allows blockchain records to be directly linked with a company’s share registry. Transferring a token will also transfer ownership of underlying stock.
Nasdaq presented its tokenization proposal in September 2025 to the U.S. Securities and Exchange Commission. The plan is also in line with the 2026 staff statement of the regulator, which treats tokenized shares the same as traditional stocks under federal law.
Toward Always-On Global Markets
Both firms claim that the partnership is a part of a larger effort to modernize the market infrastructure for a system that operates increasingly around the clock.
Arjun Sethi is the co-CEO of Payward. Tokenization can turn equities in to programmable financial assets that can be traded across multiple trading platforms, financial applications and blockchain networks, while maintaining regulatory protections.
Nasdaq’s President Tal Cohen stated that the exchange believes tokenization can expand global access to U.S. stocks while strengthening the relationship between public companies, and their investors.
Nasdaq anticipates that its equity token technology and related distributed ledger services will be operational in the first six months of 2027. This development is a major step towards integrating traditional financial infrastructure with blockchain-based capital markets.
This site is for entertainment only. Click here to read more
