Nasdaq is putting serious capital behind tokenized markets. On September 10, Nasdaq Ventures committed $100 million in Payward — Kraken’s holding company — to partner in the launch of tokenized equities and infrastructure solutions with the cryptocurrency exchange Kraken.
Contents
- Nasdaq Just Put $100M Into Kraken. What Is It Really Buying?
- Nasdaq Equity Tokens: The Bigger Story Behind the Kraken Deal
- How Nasdaq Equity Tokens Will Work With Kraken xStocks
- The Real Goal Is 24/7 Stock Trading
- Why Nasdaq’s Model Is Different From Today’s Tokenized Stocks
- Nasdaq Is Bringing Wall Street Infrastructure Into Crypto
- When Will Nasdaq Tokenized Stocks Launch?
- Could Tokenized Stocks Finally Go Mainstream?
- What the Nasdaq-Kraken Deal Means for the Future of Stock Markets
- FAQ
Nasdaq Just Put $100M Into Kraken. What Is It Really Buying?
The Nasdaq Kraken $100 million agreement aligned both companies to connect regulated capital markets with blockchain networks.
This investment comes after the announcement of a partnership in March and Nasdaq’s launch of Digital Liquidity Networks in August, a business to combine liquidity, tokenization and financial infrastructure as traditional and digital markets converge.
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Why Nasdaq Invested in Payward, Kraken’s Parent Company
For anyone wondering why did Nasdaq invested $100 million in Kraken, according to Nasdaq, the investment advances the modernization of the financial markets with Payward as a partner in the development of infrastructure for tokenized equities, always-on markets, and links between traditional and decentralized networks.
Payward has also developed on-chain infrastructure, and the xStocks framework used by Kraken has reportedly seen over $25 billion in total volume and over $4 billion settled on-chain.
What the $100 Million Investment Says About Nasdaq’s Strategy
Nasdaq does not appear to consider tokenization as an experiment on the periphery, but building Nasdaq tokenized equities around an issuer-centric model preserves governance, regulatory compliance, and market integrity while extending securities infrastructure onto digital networks.
The approach extends beyond the creation of the tokens, as Payward will adopt Nasdaq market surveillance technology across Payward trading venues, and both companies will partner to build Nasdaq Equity Token infrastructure.
| Nasdaq–Kraken Deal at a Glance | Details |
| Investment | $100 million from Nasdaq Ventures into Payward, Kraken’s parent company |
| Strategic focus | Tokenized equities and always-on market infrastructure |
| Nasdaq brings | Regulated-market expertise and market-surveillance technology |
| Payward/Kraken brings | Crypto-native execution, xStocks infrastructure and blockchain connectivity |
| Planned infrastructure | Gateway between regulated markets and permissionless blockchains |
| Compliance | KYC and AML onboarding for eligible participants |
| Settlement | Payward expected to provide initial settlement capabilities for eligible NET transactions |
| Broader goal | Connect traditional capital markets with on-chain financial infrastructure |
Why Nasdaq Needs Kraken’s Crypto-Native Infrastructure
Nasdaq brings its expertise in regulated markets and surveillance systems; Kraken brings its exchange infrastructure and Kraken xStocks infrastructure, and Payward brings Kraken’s execution venue.
The companies anticipate developing a gateway for approved customers to transfer tokenized equities between the regulated permissioned equity markets and permissionless public blockchains.
Payward is also expected to provide Know-Your-Customer (KYC) and Anti-Money Laundering (AML) onboarding, as well as initial settlement capabilities for approved Nasdaq equity-token transactions.
This division of responsibilities goes some way to explaining why Nasdaq is investing in Kraken. Nasdaq provides regulated-market infrastructure. Payward provides crypto-native execution and blockchain connectivity and settlement capabilities.
Nasdaq Equity Tokens: The Bigger Story Behind the Kraken Deal
The partnership with Payward is part of Nasdaq’s wider effort on developing a platform for issuer sponsored tokenized equity which can be issued across regulated markets and blockchain networks, and for which existing ownership, governance, and market integrity standards are applicable.
Nasdaq Equity Tokens are not just blockchain-based digital representations of a company’s stock price; they would also allow public companies to retain a role in determining how their equities are presented and managed on-chain.
What Are Nasdaq Equity Tokens (NETs)?
Nasdaq Equity Tokens NETs are proposed issuer-sponsored tokenized equities. Nasdaq and Payward are building a market infrastructure for the NETs model, including connectivity with xStocks, with the ability to distribute, trade, and process the tokenized securities.
Thus, it helps answer the question of what are Nasdaq Equity Tokens as they are not intended to be stand-alone synthetic exposure but tokenized equity representations focused on issuer engagement.
How NETs Are Designed to Preserve Shareholder Rights
Nasdaq argues that its design respects the rights associated with ownership of the underlying company shares, putting the issuer at the center of ownership and governance, and provides features such as more efficient corporate actions, proxy voting, and shareholder engagement through tokenization.
This is central to how do Nasdaq Equity Tokens work, as Nasdaq would need to retain issuer rights, regulatory compliance, and price integrity as the securities are transferred between regulated and on-chain markets. Tokenized securities that are treated as equivalent to regular shares would have the same voting and ownership rights and investor protections.
Why Nasdaq Wants Tokenized Stocks to Remain Linked to the Issuer
However, Nasdaq has argued that the growth of synthetic equity transactions on permissionless and unregulated networks calls for a more issuer-centered alternative that allows public companies to have more control over how their company’s shares are represented and traded as tokens, based on traditional governance protocols.
That makes Nasdaq tokenized stocks, which are about more than just putting stock exposure on a blockchain, a way to preserve the relationship between the security, the issuer, and the investors, and to connect equities to digital-market infrastructure.
How Nasdaq Equity Tokens Will Work With Kraken xStocks
Nasdaq and Payward are developing a gateway that will connect with a planned equity-token framework from Nasdaq and the xStocks ecosystem, with the ability to transfer tokenized equities between regulated marketplaces and permissionless blockchains.
Instead, the project combines Nasdaq’s issuer-led model and Payward’s on-chain infrastructure to integrate Nasdaq xStocks connectivity into a much larger ecosystem.
Why Nasdaq Is Connecting NETs to the xStocks Ecosystem
xStocks gives Nasdaq access to existing infrastructure to allow tokenized U.S. equity exposure on-chain. Kraken estimates the ecosystem generated over $25 billion in total trading volume. xChange connects liquidity between Ethereum and Solana.
In addition, Payward is expected to provide crypto-native execution, onboarding and settlement capabilities on Nasdaq NETs, while Nasdaq will contribute its regulated-market infrastructure and its issuer-centric framework.
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What Kraken xStocks Already Offers Investors
Kraken xStocks are tokenized U.S. stocks and exchange-traded funds issued by Backed Assets (JE) Limited. Each stock or ETF token is backed by the underlying security in a 1:1 ratio. Users can buy, sell, convert, and hold them through Kraken, though this varies by region.
The products support fractional exposure and blockchain transference. Kraken allows for extended trading hours on its platform. Withdrawn xStocks can be traded 24/7 on-chain.
Tokenized stocks on Kraken do not convey voting or legal rights to underlying stock, nor do they entitle the holder to dividends. Instead, these rights and benefits are allocated through a process called rebasing.
NETs vs xStocks: What Is the Difference?
Existing xStocks tokenized stocks provide collateralized economic exposure to the underlying security without conferring shareholder rights to the underlying company for token holders.
Nasdaq’s NET framework focuses on issuers and would keep companies at the center of the tokenized features of regulated equities, in terms of ownership, transparency, and governance.
How Tokenized Shares Could Move Between Traditional and On-Chain Markets
An interoperability gateway could support the transfer of tokenized equities by eligible clients across regulated infrastructure and permissionless blockchains, as applicable to regulatory and jurisdictional considerations.
Payward is expected to include KYC and AML onboarding and settlement capabilities for qualifying NET transactions, and to connect blockchain-based stocks to the existing infrastructure of capital markets rather than building a new market entirely.
| Nasdaq Equity Tokens vs Kraken xStocks | Nasdaq Equity Tokens (NETs) | Kraken xStocks |
| Model | Issuer-centric tokenized equities | Tokenized exposure backed by underlying securities |
| Issuer involvement | Designed to keep public companies central to ownership and governance | Issued by Backed Assets (JE) Limited |
| Shareholder rights | Designed to preserve rights associated with regulated shares | No direct voting or ownership rights in the underlying company |
| Infrastructure | Regulated markets connected with blockchain networks | Crypto-native and on-chain infrastructure |
| Trading | Planned integration with regulated and on-chain markets | Extended-hours trading on Kraken; 24/7 after withdrawal on-chain |
| Settlement/connectivity | Payward expected to support settlement and blockchain connectivity | Existing xStocks infrastructure across supported networks |
| Main purpose | Bring regulated equities into tokenized market infrastructure | Provide blockchain-based exposure to stocks and ETFs |
The Real Goal Is 24/7 Stock Trading
Nasdaq has increasingly defined tokenization as part of the company’s goal to create “always-on” markets. Besides its Payward partnership to create a hybrid centralized and decentralized technology stack, Nasdaq was granted permission by the SEC to trade U.S. equities for 23 hours a day, five days a week.
While related, Nasdaq has stated that tokenized securities will not necessarily be considered 24/7 instruments and will instead follow the traditional exchange hours as the market grows.
Why Nasdaq Wants Equity Markets on Rails That Do Not Close
Nasdaq reports that the demand for always-on, programmable liquidity is accelerating, and its approach addresses trading, clearing, settlement, risk management and collateral, beyond just digital shares.
While this infrastructure could support trade stocks 24/7, Nasdaq hasn’t implemented it yet. The application approval allows for 23 hours of weekday trading, and tokenized securities will be available as the underlying market extends its trading hours during the week.
How On-Chain Settlement Could Change the Stock Market
According to Nasdaq, additional benefits of tokenization include faster settlement and easier movement of collateral. In July 2026, Nasdaq and DTCC participated in live production transactions where DTC-held assets were tokenized and traded on Nasdaq Stock Market.
For blockchain equities, this would show how distributed-ledger technology could make post-trade processes more efficient without replacing regulated exchanges or existing rules governing the securities industry.
Could Tokenized Stocks Trade When Nasdaq Is Closed?
Tokenized assets can trade 24/7 on blockchain networks. In Nasdaq’s model, tokenized securities would not necessarily trade 24/7, although Nasdaq says its trading hours would continue to align with traditional securities as its schedule expands.
For the tokenized stocks 24/7 trading, however, on-chain transferability does not imply continuous exchange trading, as securities remain subject to regulated-market and post-trade requirements.
What Happens to Clearing and Settlement When Stocks Move On-Chain?
In Nasdaq’s system, DTC continues to clear and settle the trade, and the eligible participants indicate whether the security should settle in legacy or tokenized form, with Nasdaq notifying DTC.
Tokenization therefore does not necessarily eliminate existing infrastructure. For example, Nasdaq’s platform allows securities to be tokenized and settled with the same CUSIP, trading symbol, and shareholder rights as traditional securities.
Why Nasdaq’s Model Is Different From Today’s Tokenized Stocks
Nasdaq’s approach differentiates actual tokenization of a security from a token that simulates the security. Under Nasdaq’s approach, tokenized shares are fungible with the security’s analog (e.g., share, price, CUSIP, ticker, etc.) and impart the same rights and privileges as would be applicable to the security.
In contrast to many crypto-native digital assets, Nasdaq’s blockchain simplifies but does not replace existing market and regulatory infrastructures. The blockchain does change how ownership is represented and transferred, but Nasdaq intends for the securities to remain in existing infrastructures.
The Problem With Crypto Platforms Offering Tokenized Shares
Although some products offer economic exposure without conferring shareholder status on the holder, Kraken’s xStocks, for example, are fully backed 1:1 with the underlying stocks, but do not confer any rights — and do not grant ownership or voting rights — to the holder.
Nasdaq argues that an issuer-centric alternative to the boom of synthetic equity contracts on permissionless networks is preferable, because a token tracking the value of a stock is not necessarily legally equivalent to that underlying stock.
Why Issuer Control and Shareholder Rights Matter
Nasdaq intends for public companies to remain the center of ownership rights, transparency, and corporate governance as it looks to potentially leverage the advantages of tokenization for proxy voting or shareholder outreach.
Nasdaq rules state that a tokenized security that is deemed to be equivalent to a traditional share must afford, at a minimum: an equity interest, dividend rights, voting rights, and a right to residual assets upon liquidation.
Nasdaq’s Approach vs Kraken’s Existing xStocks
Kraken’s current xStocks, issued by Backed Assets (JE) Limited, allow market participants exposure to price movements of underlying U.S. equities and ETFs, and allow fractional ownership and on-chain transfer. However, holding an xStock is not the same as holding the underlying equity.
Nasdaq’s model instead aims to preserve the legal characteristics of the security. This distinction between NETs and xStocks tokenized stocks is particularly important as Nasdaq and Payward work together: the planned NET framework is separate from Kraken’s existing xStocks product.
Why This Could Be More Important Than Simply Putting Stocks on a Blockchain
Nasdaq project appears to focus on incorporating tokenization into its regulated market infrastructure. Tokenized and traditional shares would cohabit the same Nasdaq market, both subject to existing securities laws, surveillance, and investor protections.
For Nasdaq tokenized stocks, the tech behind the product is just part of its strategy, as the company looks towards persisting fungibility, retaining shareholder rights, and issuer governance along with the security for on-chain formats.
| What Makes Nasdaq’s Tokenization Model Different? | Nasdaq Model | Typical Tokenized Stock Exposure |
| Nature of the asset | Tokenized form of an eligible security | Token tracking economic exposure to a stock |
| Fungibility | Designed to remain fungible with the traditional security | Generally a separate tokenized product |
| Shareholder rights | Preserves applicable ownership, voting and dividend rights | May not provide direct shareholder rights |
| Issuer role | Issuer remains central to governance and ownership | Issuer may have no direct role in the token |
| Market infrastructure | Integrated with regulated securities infrastructure | Often distributed through crypto-native infrastructure |
| Investor protection | Existing securities rules and market surveillance remain applicable | Protections depend on the product, issuer and jurisdiction |
| Core objective | Modernize how regulated securities are represented and transferred | Provide on-chain access to stock-linked economic exposure |
Nasdaq Is Bringing Wall Street Infrastructure Into Crypto
The partnership between Nasdaq and Payward combines crypto-native execution services and xStocks from Kraken and Nasdaq’s operating expertise in regulated markets along with time-tested surveillance technology and systems from traditional capital markets.
Digital Liquidity Networks, a division of Nasdaq responsible for always-on markets, leads the partnership on Nasdaq side. Nasdaq Kraken supports the mission to connect tokenized markets with existing market integrity standards.
What Nasdaq Brings to the Kraken Partnership
Nasdaq has considerable experience operating regulated markets and systems used by many leading financial institutions. Nasdaq monitors multiple asset classes and venues, including up to 60 billion transactions per day at peak, according to its public statements.
This infrastructure for Nasdaq tokenized equities is complementary to Payward’s blockchain infrastructure, and the companies are building distribution, trading and post-trade capabilities while maintaining issuer and investor protections.
Why Kraken Is Adding Nasdaq Market Surveillance
Payward will be utilizing Nasdaq’s market-surveillance technology for its crypto, equities, tokenized-equity, futures and options marketplaces to strengthen market integrity as it seeks to broaden its range of asset offerings.
Nasdaq’s technology uses real-time monitoring and analytics to identify potential abusive or anomalous trading activity. Its surveillance products are used by exchanges, banks, brokers and regulators worldwide.
Can Tokenized Equities Have Crypto-Like Trading Without Crypto-Like Market Risks?
The vision of Nasdaq and Payward’s gateway is to build a bridge between permissioned markets and permissionless blockchains, marrying the benefits of always-on, programmable markets with the protection of a regulated financial infrastructure, while safeguarding issuer rights, compliance, and price integrity.
That does not eliminate market risk. Nasdaq acknowledges regulatory, competitive, and implementation risks around their plans. The model does lend itself to existing surveillance, governance and compliance infrastructures as tokenized assets take on further on-chain functionality.
When Will Nasdaq Tokenized Stocks Launch?
While Nasdaq states its proposed NET framework is currently expected to launch sometime in the second quarter of 2027, this is simply the clearest response from Nasdaq on when will Nasdaq tokenized stocks launch, rather than a commercially guaranteed launch date.
Importantly, Nasdaq had already received SEC approval for rules allowing eligible securities to be traded on Nasdaq in tokenized form, but NETs are part of a broader Nasdaq-Payward effort that has its own infrastructure and distribution plan.
Nasdaq Equity Tokens Are Targeted for Q2 2027
Investors wondering when will Nasdaq Equity Tokens launch can see Nasdaq continues to state Q2 2027. Nasdaq reaffirmed that date when they announced their expanded partnership — and $100 million investment agreement — with Payward on 10 September 2026.
Nasdaq equity tokens 2027 target follows work earlier this year inter-operating NETs with Payward’s xStocks system while preserving the rights and protections of issuers and investors.
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What Still Needs to Be Built Before the Launch
Nasdaq and Payward noted that continued work is needed on the operational and commercial infrastructure that underpin NETs, with Nasdaq stressing global distribution and trading and post-trade capabilities as areas of focus.
Post-trade processes are also part of Nasdaq’s regulated tokenization model. In SEC filings, Nasdaq indicated that tokenized trading would rely on DTC infrastructure and settlement services, with DTC creating the systems/processes.
Where Could Investors Trade Nasdaq Equity Tokens?
The NET framework was designed to integrate with Payward’s xStocks ecosystem and provide a blockchain gateway between regulated, permissioned markets and permissionless blockchain networks. Nasdaq and Payward also collaborated on global distribution capabilities.
That does not yet amount to a finalized list of retail trading venues or eligible jurisdictions. Nasdaq’s September announcement did not specify every platform or market in which NETs would be available at launch, so it would be premature to speculate about venues other than the one that has been disclosed (the Payward/xStocks link).
Could Tokenized Stocks Finally Go Mainstream?
Tokenized equities are moving beyond crypto-native experiments. Nasdaq’s $100 million funding round into Payward places America’s largest stock exchange operator behind the infrastructure that powers these always-on markets. Kraken says xStocks has more than $25 billion in transaction volume.
This does not guarantee mass adoption, but it does give Nasdaq Equity Tokens an institutional infrastructure and a presence in an established on-chain ecosystem.
Why Nasdaq’s Entry Is Different From Crypto Startups Tokenizing Stocks
Nasdaq, however, is taking a different approach, with its rules approved by the SEC to allow eligible securities to trade on the platform in tokenized form. The NET project stresses issuer engagement, governance, compliance and market integrity.
This differentiates Nasdaq Equity Tokens NETs from other equity token products, including derivatives-like products such as Kraken’s existing xStocks, which are 1:1 backed but lack shareholder rights, as typical of derivatives.
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How Nasdaq’s Move Changes the Competition for Tokenized Equities
Traditional exchanges are starting to introduce blockchain-based investment products. Likewise, some crypto exchanges are moving into equities and derivatives. Nasdaq’s investment in Payward promises to accelerate that convergence by connecting legacy exchanges with one of the world’s largest crypto exchanges.
Cryptocurrency exchanges are also starting to compete; Kraken hit the milestone of 100 xStocks in March 2026 and said it plans to exceed 500 before the end of the year, illustrating the speed at which the market for tokenized equity is evolving.
Why 24/7 Trading Could Be the Killer Feature for Tokenized Stocks
Unlike typical shares, tokenized equities traded on Kraken Pro — after careful selection of xStocks — 24/7, and on-chain after withdrawal from Kraken.
Tokenized stocks 24/7 is not 24/7 trading. Nasdaq has SEC-approved separate 23-hour-a-day, five-day-a-week trading, but this further expands Nasdaq trading schedule; it does not create a 24/7 regulated equity market.
| What Could Drive Mainstream Adoption? | Why It Matters |
| Major exchange participation | Nasdaq brings regulated-market infrastructure and institutional credibility |
| Regulatory framework | SEC-approved rules provide a path for eligible tokenized securities on Nasdaq |
| Existing on-chain demand | Kraken says xStocks has exceeded $25 billion in transaction volume |
| Growing asset selection | Kraken reached 100 xStocks in March 2026 and targeted more than 500 by year-end |
| Longer trading hours | Tokenization can extend market access beyond conventional exchange sessions |
| Issuer involvement | Nasdaq’s model is designed around governance, compliance and shareholder rights |
| TradFi–crypto connectivity | The Payward partnership links regulated markets with crypto-native infrastructure |
What the Nasdaq-Kraken Deal Means for the Future of Stock Markets
The agreement between Nasdaq and Payward brings together financial securities markets and blockchain infrastructure. Nasdaq touted the deal as a joint development of tokenized equities, always-on markets and the movement of capital and liquidity across traditional and decentralized networks.
It doesn’t mean the existing exchanges will be displaced by blockchain, but what Nasdaq is doing is experimenting with how existing rules, investor protections and institutional infrastructure can co-exist with tokenized markets.
Are Traditional Exchanges Moving Toward Always-On Markets?
It is already starting to go that direction: In April 2026, the SEC approved Nasdaq’s proposal to extend the trading day to 23 hours per day, five days a week. Nasdaq told regulators that demand for overnight access was a bigger ask, especially from international buyers, and that some digital-asset and tokenized-securities platforms already offer 24/7 access.
The trend therefore extends beyond trade stocks 24/7 as a crypto-style feature. Nasdaq’s strategy combines longer trading hours with infrastructure intended to support programmable liquidity and tokenized assets.
Could Blockchain Become the Settlement Layer for Equities?
The use of blockchain rails with existing settlement architecture has also been demonstrated. In July 2026, Nasdaq participated in a DTCC production event where securities held at the DTC were tokenized and traded on the Nasdaq Stock Market.
That does not mean blockchain is about to replace DTC or become the universal settlement layer. However, the proof of concept shows that blockchain-based stocks could work with existing regulated securities infrastructure while improving collateral mobility and continuous markets.
Is Nasdaq Building a Bridge Between Wall Street and Crypto?
That is effectively how Nasdaq describes the Payward collaboration, which forms a gateway between regulated and permissioned markets and the permissionless worlds of blockchain. Payward will bring crypto-native infrastructure while Nasdaq will provide regulatory expertise.
The Nasdaq Kraken relationship therefore is not just moving Wall Street to a blockchain, but linking two market structures. Governance, compliance, and market integrity is said to be Nasdaq’s priority, while expanding how equities can be distributed, traded, and settled.
FAQ
Why Did Nasdaq Invest $100 Million in Kraken’s Parent Company?
Nasdaq invests $100 million in Kraken through its parent company, Payward, as both companies deepen their partnership around tokenized equities and always-on markets by combining Nasdaq’s regulated infrastructure with Payward’s crypto-native technology and xStocks ecosystem.
What Are Nasdaq Equity Tokens?
For investors asking how do tokenized stocks work, Nasdaq’s issuer-sponsored model is designed to preserve the ownership rights, governance and regulatory protections of traditional shares, while Nasdaq and Payward build the infrastructure to issue, trade and settle these equities.
How Are Nasdaq Equity Tokens Different From Kraken xStocks?
Kraken’s xStocks provide tokenized economic exposure to an underlying stock or ETF, but do not provide traditional shareholder rights. Nasdaq has indicated that its market will have an issuer-centric model where the rights and characteristics of the underlying security will be preserved.
Will Nasdaq’s Tokenized Stocks Trade 24/7?
Not yet. Nasdaq has said that tokenized securities will coincide with its regulated marketplace schedule as trading hours expand, although they may have other uses within an on-chain ecosystem outside exchange infrastructure.
When Are Nasdaq Equity Tokens Expected to Launch?
Nasdaq now expects to have this framework in place sometime in the second quarter of 2027, subject to development, operational, and regulatory consideration.
