Kraken and Nasdaq forge alliance to launch issuer-controlled tokenized stock platform
Through a collaboration between Nasdaq and Kraken, tokenized stocks will gain the ability to transition between traditional regulated exchanges and blockchain-based markets without compromising issuer control or regulatory standards.
The second-largest stock exchange globally by market capitalization, Nasdaq, is pushing forward with tokenized equity innovation through a strategic partnership with American cryptocurrency platform Kraken.
The stock exchange operator revealed plans Monday to facilitate equity tokenization while maintaining issuer authority over their securities.
The collaboration involves Nasdaq working alongside Payward, which serves as Kraken's parent entity, and Backed, its subsidiary responsible for issuing xStocks, to create a gateway for transforming traditional equities.
Tokenization has the potential to unlock the benefits of an always-on financial ecosystem — enhancing how investors access markets, how issuers engage with shareholders.
Tal Cohen, Nasdaq president
This initiative follows Nasdaq's tokenization framework submission to United States securities authorities in September 2025, alongside Kraken's purchase of Backed, the entity behind xStocks, which took place in December.
Nasdaq connects to tokenized equities via the xStocks ecosystem
The collaborative effort between Nasdaq and Kraken seeks to facilitate frictionless movement of tokenized equities across regulated traditional markets and worldwide blockchain-based markets while maintaining issuer control, adherence to regulations and accurate pricing.
By connecting Nasdaq's market infrastructure with the xStocks ecosystem, the gateway is designed to create interoperability between financial systems and decentralized networks.
As the tokenization framework continues to develop, the exchange intends to bring in more issuers, transfer agents, regulatory bodies, industry infrastructure providers and other market participants, though involvement will continue to be optional.
The exchange anticipates launching this initiative and making supplementary services accessible to issuers beginning in the first half of 2027.
Tal Cohen, Nasdaq president
This tokenization initiative from Nasdaq emerges as market rivalry intensifies. During the previous week, Intercontinental Exchange made an investment in cryptocurrency platform OKX to introduce tokenized stocks listed on NYSE to the platform in the second quarter of 2026.