Nasdaq Partners With Kraken Parent Payward to Build Tokenized Equities Gateway, Targeting 24/7 Stock Trading by 2027

Infrastructure Linking Wall Street Equities With DeFi Networks Moves Toward Launch Timeline

TL;DR

• Nasdaq and Payward, the parent company of Kraken, announced a partnership on March 9, 2026 to build infrastructure connecting tokenized equities with decentralized finance networks.
• The initiative centers on Kraken’s xStocks framework and an “equities transformation gateway” designed to bridge regulated capital markets with blockchain systems.
• Tokenized equities infrastructure aims to enable continuous trading beyond traditional market hours and could launch in the first half of 2027 pending regulatory approvals.

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Nasdaq disclosed a partnership with Payward, the parent company of cryptocurrency exchange Kraken, on March 9, 2026 to build infrastructure designed to connect tokenized equities with decentralized finance networks. The collaboration focuses on developing technology that links traditional capital markets with blockchain systems through tokenization, allowing digital representations of publicly traded shares to move between regulated trading venues and blockchain-based financial networks.

Payward and Nasdaq said the project will develop what they described as an “equities transformation gateway,” a framework intended to connect permissioned financial markets with permissionless blockchain networks. The system combines Nasdaq’s regulated market infrastructure with Kraken’s blockchain technology to enable tokenized versions of equities to circulate across both traditional trading venues and decentralized ecosystems.

Central to the initiative is Kraken’s xStocks tokenization framework, which converts shares of publicly traded companies into blockchain-based tokens. The tokens represent ownership of the underlying securities and are designed to function as digital equivalents of traditional stocks while maintaining links to established financial market systems and regulatory oversight.

Tokenized equities issued through the infrastructure would preserve the same shareholder rights as conventional shares, including dividend distributions, proxy voting, and participation in corporate actions. Each token transaction would mirror a legally recognized stock trade under existing securities laws rather than functioning as synthetic exposure to equities.

The partnership builds on earlier regulatory engagement by Nasdaq, including a proposal submitted to the U.S. Securities and Exchange Commission during 2025 seeking approval to allow tokenized versions of listed stocks and exchange-traded products to trade alongside traditional shares. Regulators have indicated that tokenized equities must comply with existing securities frameworks and provide the same protections granted to conventional investors.

Payward Services will handle identity verification and compliance procedures for participants accessing tokenized equities through the Kraken ecosystem. The onboarding process includes Know Your Customer and Anti-Money Laundering checks designed to ensure regulatory compliance across jurisdictions.

The infrastructure aims to support continuous trading of equities beyond the standard U.S. market schedule, which typically operates from 9:30 a.m. to 4:00 p.m. Eastern Time. Continuous trading would allow investors globally to access tokenized equities outside traditional market hours while relying on blockchain settlement infrastructure rather than legacy clearing systems.

Tokenization infrastructure also seeks to reduce settlement delays by enabling near-instant transaction processing compared with the two-day settlement cycle currently used in traditional stock markets. Blockchain-based systems can automate several functions typically handled by brokers, custodians, and clearinghouses.

Kraken’s xStocks system has already recorded more than $25 billion in transaction volume since launch, according to figures provided by the company. Blockchain settlement activity linked to the framework exceeded $4 billion in on-chain transactions while the network reported more than 85,000 unique holders participating across supported blockchain networks.

Kraken has also introduced derivatives products tied to tokenized equities through tokenized equity perpetual futures, offering leveraged exposure to traditional financial assets through crypto-style trading infrastructure. These products are accessible to traders in more than 110 countries and provide exposure to assets including major U.S. equities, the Nasdaq-100 index, the S&P 500 index, and commodities such as gold.

Some of the tokenized derivatives products support leverage of up to 20× while maintaining continuous trading availability even when traditional equity markets are closed. Kraken described the structure as an extension of crypto market mechanics into traditional financial asset classes.

Tokenized asset initiatives have expanded across global financial institutions as blockchain infrastructure is increasingly integrated into traditional capital markets. Major financial firms including BlackRock, JPMorgan, Goldman Sachs, and BNY Mellon have launched or tested tokenized financial instruments as part of broader experimentation with blockchain-based financial infrastructure.

Industry projections cited in discussions around tokenized real-world assets estimate the sector could reach $9.43 trillion in value by 2030. Nasdaq and Payward said their tokenization infrastructure is scheduled for a potential launch during the first half of 2027, subject to regulatory approvals and the completion of technical development.

This article has been refined and enhanced by ChatGPT.