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Nasdaq and crypto exchange Kraken announced a partnership to develop blockchain-based tokenized stocks, with the platform expected to launch in early 2027, according to Wall Street Journal reporting.
The system will allow investors outside the United States—particularly in Europe—to trade digital versions of equities and exchange-traded products with the same governance rights and dividend distributions as traditional shares.
Nasdaq separately submitted an SEC proposal in September to allow tokenized and traditional stocks to trade interchangeably on its exchange.
Nasdaq’s plan involves building a system that allows listed equities and exchange-traded products to exist in digital token form on blockchain networks. These Tokenized Stocks would represent one-to-one versions of real publicly traded shares.
Kraken, one of the world’s largest cryptocurrency exchanges, will act as a distribution partner. Through this arrangement, the exchange plans to make Tokenized Stocks available to its customers outside the United States, particularly across Europe and other international markets where demand for digital assets remains strong.
The goal is to bridge traditional financial markets and crypto infrastructure while maintaining the legal rights associated with equity ownership.
“These tokenized instruments are designed to mirror the economic and governance rights of traditional shares,” the report noted, meaning investors who hold Tokenized Stocks could still receive dividends and participate in shareholder voting.
For Nasdaq, the move is part of a larger strategy to modernize market infrastructure and explore blockchain-based settlement systems.
Kraken co-founder and chairman Jesse Powell has previously emphasized the potential of blockchain to streamline financial markets. “Blockchain technology offers a way to reduce friction in global markets and increase transparency,” Powell said in earlier remarks about tokenization initiatives.
If successful, the platform could significantly expand access to Tokenized Stocks, particularly in regions where investors currently face barriers to trading U.S. equities.
One of the central features of the proposed platform is its focus on automating corporate actions tied to Tokenized Stocks.
Corporate actions such as dividend distributions, stock splits, and shareholder voting are typically handled through complex back-office processes. Nasdaq believes blockchain technology can streamline these operations.
Under the proposal, holders of Tokenized Stocks would receive the same governance rights as traditional shareholders. That includes the ability to vote in proxy ballots and receive dividend payments from the underlying company.
Automation through blockchain could dramatically reduce administrative overhead for these processes.
Nasdaq has signaled that its approach will focus heavily on improving efficiency in corporate actions. By embedding rules directly into blockchain-based infrastructure, dividend payments and voting mechanisms could occur automatically when certain conditions are met.
Industry leaders say the tokenization of securities could reduce settlement times and improve transparency.
Larry Fink, CEO of asset management giant BlackRock, has previously described tokenization as a transformative innovation for financial markets. “The next generation for markets, the next generation for securities, will be tokenization of securities,” Fink said in a 2023 interview.
Advocates argue that integrating corporate governance mechanisms into Tokenized Stocks could make equity ownership more transparent while preserving investor protections.
The partnership with Kraken builds on a regulatory proposal Nasdaq submitted to the U.S. Securities and Exchange Commission (SEC) in September.
In that filing, Nasdaq requested permission to allow Tokenized Stocks to trade alongside traditional shares on its exchange.
Under the proposal, both the conventional stock and its tokenized counterpart would remain interchangeable. Settlement for both forms would still occur through the Depository Trust system, the central clearing infrastructure used in U.S. securities markets.
Maintaining compatibility between tokenized and traditional securities is critical for regulators who want to ensure financial stability while allowing innovation.
If approved, the framework could pave the way for Tokenized Stocks to operate within existing market structures rather than replacing them entirely.
Regulatory clarity will likely determine how quickly tokenization spreads across global exchanges.
Nasdaq’s initiative comes as several major financial players experiment with blockchain-based securities.
Last week, exchange operator Intercontinental Exchange (ICE), which owns the New York Stock Exchange, made a strategic investment in crypto exchange OKX. The investment valued OKX at roughly $25 billion and was accompanied by plans to develop products including Tokenized Stocks and crypto futures.
The move highlights growing institutional interest in merging digital asset markets with traditional financial products.
Nasdaq is also expanding its presence in Europe’s tokenization ecosystem. The exchange recently announced a partnership with Boerse Stuttgart Group’s settlement platform Seturion.
The collaboration aims to connect Nasdaq’s European trading venues to infrastructure designed specifically for tokenized securities trading and settlement.
Together, these initiatives suggest that Tokenized Stocks are rapidly becoming a focal point for financial innovation.
While widespread adoption may still be years away, industry leaders believe blockchain-based equities could ultimately transform capital markets by enabling faster settlement, greater transparency, and broader investor access.
As the Nasdaq-Kraken project moves toward its expected 2027 launch, the race to build global infrastructure for Tokenized Stocks is only beginning.
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