Markets

Nasdaq, Kraken to Launch Tokenized Stock Trading by 2027

Published March 9, 2026 Updated May 1, 2026 6 min read

Nasdaq and Kraken logos with blockchain network and tokenized stock symbols representing their partnership for tokenized equity trading

Nasdaq, the world’s second-largest stock exchange by market capitalization, has partnered with Payward, the parent company of crypto exchange Kraken, to develop institutional-grade infrastructure for tokenized equity trading. The partnership, announced on March 9, 2026, will allow investors to trade blockchain-based versions of publicly listed stocks with full shareholder rights, including voting and dividends.

Operations are expected to begin in the first half of 2027, with Kraken distributing one-to-one tokenized versions of Nasdaq-listed stocks to customers in Europe and international markets. The initiative builds on Kraken’s existing xStocks product, which has already processed more than $25 billion in total transaction volume since its launch in May 2025.

The deal represents one of the clearest signals yet that traditional finance and crypto infrastructure are converging at the institutional level, not just at the retail edge. If you still think tokenized stocks are a gimmick, this partnership should change your mind.

How the Partnership Works

Nasdaq and Payward are developing two core components: an “issuer-centered equity token design” and an “equities transformation gateway” that enables seamless movement of tokenized shares between regulated markets and blockchain-based trading venues.

The technical structure breaks down as follows:

Component	Role
Nasdaq	Provides market infrastructure, equity token design, and regulatory framework
Payward (Kraken)	Serves as primary settlement layer and handles KYC/AML compliance
xStocks	Powers the tokenization engine, building on existing 24/7 trading rails
DTCC	Traditional clearance integration for U.S.-listed securities

Key features of the tokenized equity system:

1:1 backing: Each token represents one share, fully collateralized by the underlying equity
Full governance rights: Token holders retain voting rights, dividend eligibility, and corporate action participation
24/7 trading: Tokenized stocks trade around the clock, including weekends and holidays
Permissioned access: KYC/AML onboarding through Payward ensures regulatory compliance
Self-custody option: Investors can withdraw tokenized shares to self-hosted wallets for use in DeFi protocols

Nasdaq and Kraken tokenized stock trading infrastructure diagram

The partnership preserves issuer control over their tokenized shares. Public companies remain at the center of the tokenization process, maintaining authority over corporate actions, proxy voting, and shareholder engagement, even when shares trade on blockchain rails.

Kraken’s xStocks: The Foundation

The partnership is not starting from zero. Kraken launched xStocks in May 2025 as a tokenized equities product offering exposure to major U.S. stocks (Apple, Tesla, Nvidia), indices (S&P 500, Nasdaq 100), gold, and ETFs. The product is available to non-U.S. clients in over 110 countries.

xStocks performance since launch:

$25 billion+ in total transaction volume
$4 billion+ settled on-chain
85,000+ unique token holders
Perpetual futures with up to 20x leverage
Low fees: 0.1% taker, -0.02% maker rebate

The xStocks tokens are issued by Backed Assets (JE) Limited and offered through Payward Digital Solutions Ltd. They are fully collateralized, 1:1 asset-backed instruments that can be withdrawn to self-hosted wallets. The Nasdaq partnership extends this proven infrastructure to institutional-grade scale with direct exchange backing.

Why Nasdaq Is Moving Into Tokenization

Nasdaq filed a proposed rule change with the SEC in September 2025 (Release No. 34-103980) to allow tokenized versions of listed stocks and ETFs to trade alongside traditional shares. The filing proposed that tokenized and traditional shares would share the same CUSIP number and trade on the same Nasdaq order book with identical execution priority.

The SEC accepted the filing for public comment, and Amendment No. 2 was issued on January 27, 2026, with public comments closing February 20, 2026. Final approval remains pending.

This regulatory groundwork is critical context for the Kraken partnership. While the SEC filing addresses U.S. market structure, the Payward deal focuses on international distribution, allowing Nasdaq to build operational experience in tokenized settlement without waiting for final U.S. regulatory approval.

The SEC clarified in a January 28, 2026 statement that tokenization is a “technological method” rather than a legal change, affirming that tokenized securities remain subject to existing federal securities laws. This regulatory clarity has been a catalyst for institutional adoption of tokenized assets.

The Tokenized Equities Market in 2026

The Nasdaq-Kraken announcement lands in a tokenized equities market that has grown explosively over the past year.

Metric	Value
Market size (Jan 2026)	~$963 million
Year-over-year growth	2,878% (from $32M in Jan 2025)
Growth vs. tokenized treasuries	30x faster
Citigroup 2030 projection	$4-5 trillion
Current share of global stock market	0.0004% of $147.6 trillion

Key players in the tokenized equities space include:

Ondo Global Markets: Reached $350 million in TVL by late October 2025
Kraken xStocks: Grew ninefold to $186 million in TVL within five months of launch
LBank: Reported over $15 billion in tokenized stock trading volume

The tokenized equities sector is expanding 30 times faster than other tokenized asset classes. The combination of SEC regulatory clarity, institutional interest from firms like Morgan Stanley, and now direct infrastructure partnerships between major exchanges suggests the market is entering a new growth phase.

Tokenized equities market growth chart showing 2,878 percent year-over-year increase from $32M to $963M

What This Means for Investors

For crypto-native investors, the partnership opens a path to traditional equity exposure without leaving blockchain rails. For traditional investors, it promises 24/7 market access and potentially faster settlement.

Near-term implications:

European and international Kraken users will gain access to tokenized versions of Nasdaq-listed stocks by H1 2027
Tokenized shares can be used as collateral in DeFi protocols, creating new capital efficiency
24/7 trading eliminates the gap between crypto markets (always open) and stock markets (limited hours)

Longer-term significance:

If the SEC approves Nasdaq’s rule change, tokenized and traditional shares could trade on the same order book in the U.S.
Other major exchanges (NYSE, CBOE) may pursue similar tokenization initiatives to remain competitive
The boundary between “crypto exchange” and “stock exchange” continues to blur

This follows a broader trend of institutional convergence. Bitcoin ETFs have attracted hundreds of millions in inflows, and sovereign actors like Kazakhstan’s central bank are investing national reserves in crypto infrastructure. The Nasdaq-Kraken deal extends that trajectory from asset-level adoption to infrastructure-level integration.

Risks and Considerations

Several challenges could affect the partnership’s success:

Regulatory uncertainty: U.S. SEC approval for domestic tokenized trading remains pending, and the political climate could shift
Counterparty risk: Tokenized stocks depend on the issuer (Backed Assets) maintaining full collateral backing at all times
Smart contract risk: Blockchain-based settlement introduces new attack vectors compared to traditional clearinghouse systems
Market fragmentation: If tokenized and traditional shares trade on different venues, liquidity could split rather than consolidate
Jurisdictional complexity: Operating across 110+ countries with varying securities regulations creates compliance overhead

This is not financial advice. Tokenized securities carry risks including, but not limited to, smart contract vulnerabilities, regulatory changes, and counterparty risk. Always conduct your own research before investing.

Sources

CoinDesk: Nasdaq partners with Kraken to distribute tokenized stocks globally
Decrypt: Nasdaq Partners With Kraken for Tokenized Stocks, Launching 2027
Cointelegraph (via TradingView): Nasdaq partners with Kraken for issuer-centric tokenized equities
Kraken Blog: Payward Partners with Nasdaq to Develop xStocks-Powered Gateway
SEC: Notice of Filing of Proposed Rule Change, SR-NASDAQ-2025-072
Phemex: Tokenized Equities Market Surges to $963M in 2026

Bottom line

Nasdaq and Kraken’s parent company Payward are building institutional-grade infrastructure for tokenized stock trading, with operations expected to begin in H1 2027. The partnership combines Nasdaq’s market infrastructure with Kraken’s proven xStocks platform ($25B+ in volume), enabling 24/7 trading of tokenized equities with full shareholder rights. With the tokenized equities market up 2,878% year-over-year and Citigroup projecting $4-5 trillion by 2030, this deal positions both companies at the center of a rapidly growing sector.

Frequently asked questions

What is the Nasdaq and Kraken tokenized stocks partnership?

Nasdaq has partnered with Payward (Kraken’s parent company) to build infrastructure for issuing and trading tokenized versions of publicly listed stocks. Token holders retain full shareholder rights including voting and dividends.

When will Nasdaq tokenized stock trading launch?

Operations are expected to begin in the first half of 2027, with Payward serving as the primary settlement layer.

Can US investors buy Nasdaq tokenized stocks through Kraken?

Initially, Kraken will distribute tokenized stocks to customers in Europe and other international markets. U.S. availability depends on SEC approval of Nasdaq’s September 2025 rule change proposal.

How big is the tokenized equities market in 2026?

The tokenized equities market reached approximately $963 million in January 2026, a 2,878% year-over-year increase. Citigroup projects tokenized securities could reach $4-5 trillion by 2030.

What is the difference between tokenized stocks and regular stocks?

Tokenized stocks are blockchain-based versions of traditional shares that carry the same rights but trade 24/7 and settle on-chain instead of through clearinghouses.