Nasdaq Partners with Kraken on Tokenized Stocks

Nasdaq has partnered with cryptocurrency exchange Kraken to develop and distribute tokenized versions of publicly listed stocks and exchange-traded funds, aiming to integrate blockchain technology with traditional capital markets. The collaboration, announced on Monday, focuses on creating a framework for issuer-sponsored equity tokens that maintain the same legal rights and protections as conventional shares, with distribution primarily targeting international investors outside the United States.

Under the agreement, Kraken, through its parent company Payward, will serve as the global distribution partner. The platform will offer one-to-one tokenized equivalents of U.S. equities and ETFs to eligible customers in Europe and other markets where Kraken operates. These tokens will share the same CUSIP identifiers as their traditional counterparts, allowing them to trade and settle through existing infrastructure like the Depository Trust and Clearing Corporation. This design ensures interoperability between blockchain networks and regulated systems, enabling 24/7 trading and programmable features for corporate actions such as proxy voting and dividend payments.