In a move that bridges Wall Street and the crypto world, Nasdaq and Kraken announced a partnership on March 9, 2026, to bring tokenized stocks to blockchain technology. This collaboration merges Nasdaq’s regulated infrastructure with Kraken’s xStocks framework, creating what they call an equities transformation gateway for tokenized shares. Nasdaq is the second-largest stock exchange, while Kraken operates as a major crypto platform.
Nasdaq and Kraken merge traditional finance with blockchain through tokenized stocks launching in 2027.
The tokenized shares carry identical rights to conventional shares. Investors can vote in proxy ballots and receive dividend payments just like traditional stockholders. These tokens maintain full legal equivalence with underlying equity and even share the same CUSIP number as their paper counterparts. Settlement happens through the Depository Trust and Clearing Corporation, the same system used for regular stocks.
This interchangeability prevents liquidity fragmentation, meaning the tokenized version isn’t a parallel market but rather the same market with a different interface. Unlike structured products, these are direct issuer tokens. Kraken’s xStocks have already been involved in $25 billion in trades outside the United States, demonstrating significant market interest.
The framework is set to launch in early 2027. It focuses on helping issuers extract value from tokenization through an opt-in process involving transfer agents. Kraken will serve as the distribution partner for Europe and global markets. This effort builds on Nasdaq’s SEC proposal from September 2025 and complements their earlier trading-focused announcement.
One exciting feature is 24/7 trading of tokenized stocks. Imagine buying shares of Tesla or Nvidia at midnight on a Sunday! This requires market maker participation to provide liquidity outside normal hours, and Nasdaq brings institutional credibility to attract these market makers. The SEC has hinted at exemptions for automated market makers trading direct issuances.
This partnership differs from earlier tokenization efforts by addressing issuer oversight concerns. The new tokens provide direct ownership, unlike Kraken’s acquired Backed Finance xStocks. Both token versions and traditional shares settle through the same DTCC infrastructure, ensuring the system works smoothly. This modernization aims to enhance proxy voting and automate corporate actions for companies. Market capitalization remains a key lens investors will use to assess tokenized issuers, since it still represents the total dollar value investors assign to a company’s equity market cap.
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