Nasdaq has entered into a partnership with cryptocurrency exchange Kraken to develop a system for issuing and trading tokenized versions of publicly listed stocks and ETFs. The platform allows investors to hold blockchain-based shares with the same rights as traditional stockholders, including dividends and proxy voting. The launch is expected in early 2027, subject to approval from the U.S. Securities and Exchange Commission (SEC).
Core Infrastructure: xStocks Framework
Through its parent company Payward, Kraken will act as the primary settlement layer for Nasdaq equity token transactions and serve as the distribution partner for tokenized shares to customers outside the United States, with Europe as the primary target market. U.S. investors are excluded under the current plan. The partnership is powered by Kraken's xStocks framework, which has processed over $25 billion in transaction volume and counts more than 85,000 unique holders since its launch less than a year ago.
How It Works and Regulatory Path
The initiative builds on a proposal Nasdaq submitted to the SEC in September 2025, seeking approval to allow tokenized versions of its listed stocks and ETFs to trade alongside traditional shares. Under the proposal, both versions would settle through the Depository Trust Company (DTC), keeping them interchangeable. Separately, Nasdaq also announced a partnership with Boerse Stuttgart Group's tokenized settlement platform Seturion to connect its European trading venues to tokenized securities infrastructure.
Third Major Exchange Partnership in a Week
The Nasdaq-Kraken deal is the third major exchange partnership in tokenized equities in the past week alone. Last week, ICE, the parent company of the New York Stock Exchange, made a strategic investment in OKX at a $25 billion valuation, signing a deal to bring tokenized stocks and crypto futures to the platform. Coinbase also launched regulated crypto futures across 26 European countries for the first time.
Kraken's IPO Narrative
Kraken itself is targeting a public listing in 2026. A settlement-layer mandate from Nasdaq significantly strengthens that story ahead of its IPO, positioning the exchange as core financial infrastructure rather than a crypto-only platform. This partnership marks a pivotal step for Kraken's transition from a pure crypto exchange to a traditional financial infrastructure provider.
Specific launch dates, asset scope, and other details remain contingent on SEC review. As more traditional exchanges join forces with crypto platforms, the tokenized securities space is accelerating rapidly.