Nasdaq is moving deeper into blockchain-based market infrastructure with a new initiative that places public companies at the center of tokenized equity design. On March 9, 2026, the exchange operator said it plans to launch an issuer-centric framework for tokenized equities and confirmed a partnership with Payward, Kraken’s parent company, to build an “equities transformation gateway” linking regulated markets with on-chain networks. The announcement signals a notable shift in how one of the world’s largest exchange groups sees the future of stock ownership, settlement, and investor access.
What Nasdaq announced
Nasdaq said its new equity token design is intended to support tokenization while preserving issuer control, existing regulatory frameworks, and the rights attached to company shares. The company framed the effort as a way to modernize corporate actions, proxy voting, shareholder engagement, and other back-office and ownership processes that remain central to public markets.
The timing is significant. Nasdaq said the initiative builds on a proposal it filed with the U.S. Securities and Exchange Commission in September 2025. That proposal envisioned equity securities, including issuer-sponsored tokens, trading on Nasdaq markets and settling in token form through the Depository Trust & Clearing Corporation. Nasdaq also tied the new design to the SEC staff’s January 28, 2026 statement on tokenized securities, which provided additional guidance on how federal securities laws apply in this area.
According to Nasdaq, the program is expected to become operational in the first half of 2027, with additional distributed-ledger-based services for issuers becoming available on that timeline. Participation, the company said, will remain voluntary and subject to further regulatory review and market engagement.
Nasdaq partners with Kraken for issuer-centric tokenized equities
The most closely watched element of the announcement is the partnership with Kraken. Nasdaq said it is working with Payward, the parent company of the crypto platform, and with the infrastructure layer behind xStocks to design a gateway that allows issuers and investors to move between permissioned and permissionless environments. The stated goal is to let tokenized equities move between regulated markets and global on-chain markets while preserving issuer rights, compliance standards, and price integrity.
That matters because tokenized equities have often developed outside the traditional exchange structure. In many cases, crypto-native products have focused on synthetic exposure or offshore access rather than direct integration with the governance and legal rights of listed shares. Nasdaq’s approach appears designed to address that gap by making the issuer, rather than the trading venue or token wrapper alone, central to the structure.
Kraken brings an existing tokenized-equities footprint to the partnership. Its xStocks ecosystem has already expanded across multiple blockchains, and Kraken has promoted the model as a way to broaden access to U.S. equities in markets where traditional brokerage distribution is limited. In September 2025, Kraken and Backed said xStocks had generated $3.5 billion in trading volume across Solana, BNB Chain, and TRON before expanding to Ethereum.
Why the issuer-centric model matters
Nasdaq’s language suggests it wants tokenization to evolve without weakening the legal and governance architecture of public markets. In practical terms, an issuer-centric model aims to ensure that tokenized shares do not become detached from voting rights, disclosure obligations, transfer controls, and corporate action processes that define conventional equity ownership.
This is a key distinction in the tokenized securities debate. Supporters argue that blockchain rails can reduce friction in settlement, improve transparency, and support around-the-clock market operations. Critics have warned that poorly designed tokenized stock products can fragment liquidity, create uncertainty over beneficial ownership, and blur the line between regulated securities and crypto instruments. Nasdaq’s design appears to be an attempt to capture the efficiency gains while limiting those risks.
According to Arjun Sethi, co-CEO of Payward and Kraken, tokenization can improve market infrastructure by allowing equities to exist as interoperable instruments across regulated financial systems and open blockchain networks while preserving issuer rights and price integrity. In Nasdaq’s release, Sethi said the partnership could expand international access to public markets and improve collateral efficiency and capital mobility for U.S. customers.
Regulatory backdrop in the United States
The U.S. regulatory setting has become more important as tokenized securities move from pilot projects toward mainstream market infrastructure. Nasdaq explicitly linked its initiative to SEC staff guidance issued in January 2026. That statement, as summarized by legal analysis from Sidley Austin, said tokenized securities remain securities under federal law and that market participants must comply with the same core legal obligations that apply to traditional instruments.
That principle may sound straightforward, but it has major implications. It means tokenization does not eliminate the need for transfer restrictions, custody controls, disclosure standards, and market-structure compliance. Instead, the technology must fit within the securities framework or receive specific relief. Nasdaq’s proposal appears to embrace that reality rather than challenge it.
The company also referenced settlement through DTCC, a notable point because post-trade infrastructure is one of the hardest parts of tokenized-equity adoption. Without integration into established clearing and settlement systems, tokenized shares risk remaining niche products. Nasdaq’s strategy suggests that large-scale adoption will require bridges between blockchain networks and incumbent market utilities, not a clean break from them.
Impact on issuers, investors, and market infrastructure
For public companies, the potential appeal lies in greater control and better visibility over how their shares circulate in digital form. Nasdaq said its design could improve corporate actions, proxy voting, and shareholder engagement. If implemented effectively, that could give issuers more direct tools to manage ownership records and investor communications across both traditional and blockchain-based environments.
For investors, the promise is broader access and more flexible use of equity exposure. Tokenized equities can, in theory, support faster transfers, programmable ownership features, and integration with digital collateral and financing workflows. Kraken has argued that these features are especially relevant in a global, always-on market structure.
For exchanges and infrastructure providers, the announcement is a sign that tokenization is shifting from experimentation toward competitive market design. Nasdaq is not simply endorsing digital assets in general; it is proposing standards for how tokenized public equities should function inside regulated capital markets. That could influence how other exchanges, custodians, transfer agents, and clearing organizations approach the sector over the next several years.
Key takeaways from the announcement include:
- Nasdaq plans an issuer-centric tokenized equity design announced on March 9, 2026.
- The company partnered with Kraken’s parent, Payward, to build an equities transformation gateway.
- Nasdaq expects the program to be operational in the first half of 2027.
- The initiative builds on a September 2025 SEC filing and aligns with January 2026 SEC staff guidance.
- Kraken’s xStocks ecosystem already has a presence in tokenized equities across several blockchains.
Broader market context
Nasdaq’s move comes as tokenized real-world assets continue to gain traction across digital-asset markets. Within that broader trend, tokenized stocks remain one of the most closely watched categories because they sit at the intersection of securities law, exchange infrastructure, and decentralized finance. Kraken has been building in this area for some time, including partnerships tied to xStocks and tokenized public equities. In June 2025, DeFi Development Corp. said it would tokenize its Nasdaq-listed stock on Solana through Kraken’s xStocks alliance.
Still, the sector remains early. Questions persist around liquidity concentration, investor protections, cross-border distribution, and whether tokenized equities will complement or compete with existing market venues. Nasdaq’s announcement does not settle those debates, but it does raise the level of institutional involvement. When a major exchange operator proposes a framework that connects regulated markets with blockchain networks, the discussion moves beyond theory.
A second important point is that Nasdaq is emphasizing interoperability rather than isolation. The company said the gateway is intended to connect parallel systems and support advanced DLT-based services for issuers. That suggests the future model may involve traditional exchanges, clearing systems, and blockchain networks operating together rather than one replacing the other.
Conclusion
The announcement that Nasdaq partners with Kraken for issuer-centric tokenized equities marks one of the clearest signs yet that tokenized stocks are moving closer to mainstream market infrastructure. Nasdaq is positioning tokenization not as a workaround to securities regulation, but as an upgrade to the way equities are issued, governed, transferred, and serviced. By putting issuers at the center and linking its plans to SEC guidance and established settlement systems, the exchange is signaling a more institutional model for on-chain equities.
Whether the effort succeeds will depend on execution, regulatory coordination, and market adoption. But the direction is clear: tokenized equities are no longer only a crypto-sector experiment. With Nasdaq and Kraken now aligned on an issuer-centric framework, the next phase of the market will likely focus on interoperability, compliance, and practical utility for listed companies and investors alike.
Frequently Asked Questions
What did Nasdaq announce with Kraken?
Nasdaq announced on March 9, 2026 that it plans to launch an issuer-centric equity token design and is partnering with Payward, Kraken’s parent company, to build an equities transformation gateway connecting regulated and on-chain markets.
What does issuer-centric tokenized equities mean?
It refers to a tokenized equity structure that keeps public companies central to ownership rights, governance, transparency, and shareholder processes rather than letting token wrappers operate independently of issuer controls.
When will Nasdaq’s tokenized equity program launch?
Nasdaq said it expects the program to be operational in the first half of 2027, with additional DLT-based issuer services becoming available on that timeline.
Why is Kraken important to this initiative?
Kraken brings crypto-market infrastructure and the xStocks ecosystem, which Nasdaq said will help create interoperability between regulated financial systems and decentralized networks.
Are tokenized equities treated differently from regular shares under U.S. law?
SEC staff guidance issued on January 28, 2026 indicates that tokenized securities remain securities under federal law, meaning the same core legal and regulatory obligations still apply.
What is the main significance of this partnership?
The partnership suggests tokenized equities are evolving from niche crypto products toward regulated, issuer-aware market infrastructure that could reshape trading, settlement, and shareholder services over time.
