On March 9, 2026, Nasdaq announced a strategic partnership with Payward, parent company of crypto exchange Kraken, to develop an “Equities Transformation Gateway” built on the xStocks framework. The gateway aims to enable tokenized equities to flow freely between regulated permissioned markets and decentralized on-chain networks, with a target launch in the first half of 2027.
This marks the first time a major stock exchange has centered blockchain infrastructure for equity tokenization. It also represents the most significant traditional finance endorsement for xStocks, which has accumulated over $25 billion in total trading volume since its June 2025 debut, with on-chain settlement exceeding $4 billion and over 85,000 holders.
Issuer-Centric Equity Token Design
Nasdaq’s “Equity Token Design” framework keeps the issuer in control. Token transfers correspond to transfers of the underlying stock, with shareholder voting rights, corporate governance powers, and corporate actions (e.g., dividends, stock splits) recorded on-chain and integrated into the issuer’s official shareholder registry. This approach deliberately diverges from most existing tokenized equity products, which only offer price exposure without attached shareholder rights, aiming for a more legally robust tokenization structure.
Nasdaq noted the framework aligns with its proposal submitted to the SEC in September 2025 and with the SEC’s 2026 statement on tokenized securities, asserting that tokenized equities hold equal status under federal law alongside conventional stocks.
Kraken xStocks as Settlement Layer, Bridging On- and Off-Chain Liquidity
Under the partnership, Payward’s xStocks framework will serve as the gateway’s underlying infrastructure, acting as an interoperability bridge between permissioned markets and DeFi networks. Payward will also act as the “primary and base settlement layer” for Nasdaq tokenized equity trades in compliant jurisdictions, conducting KYC and AML checks via Payward Services for gateway participants.
Kraken stated that tokenization alone does not create a market; liquidity, risk management, and reliable infrastructure are essential—areas where Nasdaq’s expertise in regulated equity markets complements Payward’s digital asset infrastructure.
Traditional Finance Enters, But Implementation Awaits
The gateway is scheduled for H1 2027, with participation voluntary and subject to regulatory review. Analysts noted the ultimate impact hinges on issuer adoption, supporting legislation, and regulators’ actual recognition of on-chain equity transfers.
The announcement comes shortly after Kraken launched the world’s first tokenized equity perpetual futures (xStocks Perps) on February 24. Kraken is rapidly building a full-chain tokenized equity ecosystem—from spot xStocks, on-chain trading engine xChange, perpetuals, to now an institutional-grade gateway with Nasdaq—forming a new financial track connecting traditional stock markets with on-chain DeFi.