NEW YORK, March 9, 2026, 10:33 (EDT)
Nasdaq announced Monday it’s developing a new system for tokenized shares—those built on blockchain technology—and has enlisted Payward, the company behind crypto exchange Kraken, to help create the link between established stock markets and blockchain platforms.
This is significant at this moment, with a top U.S. exchange stepping further into tokenized equities only days after banking regulators decided lenders won’t face additional capital requirements for blockchain-based securities. SEC staff, back in January, stated that tokenized shares may be handled as traditional ones provided holders retain essentially the same rights and privileges.
Tokenization, basically, means converting an asset—like a share or bond—into a token on the blockchain. Nasdaq’s setup aims to let issuers retain control of things like proxy voting, dividends, and other actions, while tying blockchain data directly to the company’s official share ledger. Tal Cohen, president at Nasdaq, described the move as a step toward an “always-on financial ecosystem.” GlobeNewswire
Payward and Kraken plan to develop an equities transformation gateway using Kraken’s xStocks framework, aiming to let tokenized shares flow between regulated venues and public blockchains in jurisdictions where it’s allowed. Nasdaq is targeting the first half of 2027 for the launch. Arjun Sethi, co-CEO of Payward and Kraken, said the setup could open access in areas where “traditional distribution has been limited.” Kraken Blog
The Wall Street Journal says the framework is set to allow any willing issuer to join, even those that aren’t listed on Nasdaq. Kraken would handle distribution for customers across Europe and beyond the U.S. Token holders, according to the Journal, are slated to get governance rights mirroring those of traditional shareholders.
ICE, which owns the New York Stock Exchange, is pushing for regulatory sign-off on its blockchain-powered platform aimed at nonstop trading and settlement. Over in Europe, tokenized stocks are already live through Robinhood, Gemini, and Kraken. Coinbase and Dinari are moving forward with related offerings in the U.S.
Back in September, Nasdaq laid out its proposed regulatory approach in a filing to the SEC, seeking approval for listed stocks and exchange-traded products to trade either as traditional digital securities or as tokenized versions, all through Depository Trust & Clearing Corporation—the main U.S. clearing utility. Nasdaq’s filing made clear: tokenized instruments shouldn’t be considered on par with regular shares unless they offer identical material rights and protections.
But it’s still early days for the plan. Nasdaq’s September filing made clear that launching token-settled trading hinges on both SEC approval and the necessary market plumbing coming together. In January, SEC staff flagged concerns that certain third-party stock tokens could be classified as synthetic, price-linked products—not actual shares.
