TLDR
- Nasdaq will partner with Kraken to develop a platform for tokenized stocks and exchange-traded products.
- The companies plan to launch the tokenized trading platform in early 2027.
- Tokenized shares will provide the same voting rights and dividend access as traditional stocks.
- Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission to approve the plan.
- Both tokenized and traditional shares will settle through the Depository Trust to remain interchangeable.
Nasdaq will partner with crypto exchange Kraken to build a platform for tokenized stocks. The companies plan to issue and trade blockchain-based versions of listed shares and exchange-traded products. The Wall Street Journal reported that the platform could launch in early 2027.
Nasdaq Advances Tokenized Stock Proposal With SEC Filing
Nasdaq submitted a proposal to the U.S. Securities and Exchange Commission in September. The exchange requested approval to list tokenized versions of its stocks and exchange-traded products. The proposal would allow digital and conventional shares to trade alongside each other.
Under the plan, tokenized shares would grant identical corporate governance rights to investors. Shareholders would vote in proxy ballots and receive dividends through blockchain-based records. Nasdaq stated, “The initiative will focus heavily on making corporate actions more efficient through automation.”
Nasdaq designed the system to automate dividend payments and proxy voting processes. The exchange aims to improve operational efficiency through blockchain technology. The company will settle both tokenized and traditional shares through the Depository Trust.
The settlement structure will ensure that digital and conventional shares remain interchangeable. Nasdaq confirmed that it will maintain one-to-one backing for each tokenized share. The exchange expects regulatory review to proceed before the planned 2027 launch.
Kraken to Distribute Tokenized Shares Outside the United States
Kraken will serve as the distribution partner for the tokenized stock platform. The exchange will offer one-to-one tokenized shares to customers outside the United States. The companies will focus on Europe and other international markets.
Through this arrangement, Kraken customers will access tokenized versions of public company shares. Each token will represent a fully backed share listed on Nasdaq. Kraken will not offer these products to U.S. customers under the current plan.
Nasdaq and Kraken will coordinate issuance and trading on blockchain infrastructure. The companies aim to align digital settlement with existing market systems. Nasdaq said the platform will streamline recordkeeping and corporate action processing.
The Wall Street Journal reported that the collaboration builds on Nasdaq’s regulatory proposal. The exchange seeks to integrate blockchain technology within its regulated framework. Nasdaq plans to ensure compliance with existing securities rules.
Last week, Intercontinental Exchange made a strategic investment in OKX. ICE valued OKX at $25 billion as part of the transaction. ICE also signed an agreement to offer tokenized stocks and crypto futures products.
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