Payward, Kraken's parent company, is partnering with Nasdaq to develop infrastructure that connects regulated stock markets with blockchain networks. The collaboration centers on Kraken's xStocks platform, which will facilitate the movement of tokenized equities between institutional markets and decentralized finance protocols in approved jurisdictions.
Infrastructure Development and Technical Framework
The partnership establishes a gateway for tokenized shares to move between traditional regulated markets and blockchain networks while maintaining regulatory compliance. Payward Services will manage KYC and AML verification to ensure all gateway users meet required standards.
Nasdaq's equity token framework, scheduled to launch in early 2027, will preserve issuer control and shareholder rights including voting privileges and dividend distributions. The xStocks platform has already processed over $25 billion in transactions since launch, with $4 billion settled directly on-chain and more than 85,000 holders across supported networks.
This development follows Kraken Financial's recent approval for a Federal Reserve master account, making Kraken the first crypto-native company with direct access to Fedwire for settling dollar payments without intermediary banks.
Implications for Market Structure and Professional Roles
The infrastructure shift addresses fundamental limitations in how equities function within traditional brokerage systems. Tokenized equities can serve as collateral across multiple trading strategies simultaneously and move freely between venues, potentially improving capital efficiency in developed markets.
For international markets, the technology could expand access where traditional brokerage infrastructure remains limited. Arjun Sethi, Co-CEO of Payward and Kraken, noted that tokenization allows shares to function across multiple venues rather than remaining confined to single brokerage platforms.
The expansion joins existing tokenized equity offerings from Robinhood, Gemini, and Coinbase in European markets. Nasdaq has previously requested SEC approval to allow tokenized and traditional stock versions to trade alongside each other through existing settlement infrastructure.
Workforce Considerations
This infrastructure development signals growing demand for professionals with expertise bridging traditional finance and blockchain technology. Organizations building tokenized asset platforms need specialists in regulatory compliance, blockchain integration, and hybrid financial systems. As Nasdaq president Tal Cohen indicated, the technology aims to create continuous market access, requiring operational talent capable of managing always-on financial infrastructure across both traditional and decentralized systems.
