Kraken Parent Payward Partners With Nasdaq to Link Tokenized Stocks With Blockchain

• Payward, parent of Kraken, has partnered with Nasdaq to build infrastructure linking tokenized stocks with blockchain networks.
• The system will use the xStocks framework to let tokenized equities move between regulated markets and DeFi networks.
• Nasdaq plans to launch its tokenized equity infrastructure in the first half of 2027.

Global crypto infrastructure company Payward, the parent firm of Kraken, has partnered with Nasdaq to build infrastructure that links tokenized stock markets with blockchain networks.

The partnership focuses on the xStocks framework, which will act as the open infrastructure supporting Nasdaq’s planned tokenized equities. The system aims to allow tokenized shares to move between traditional regulated markets and decentralized blockchain networks in regions where the technology is allowed.

Building the Bridge Between Wall Street and DeFi

Under the partnership, Payward and Nasdaq will develop what they describe as an “equities transformation gateway”. This gateway links permissioned, regulated equity markets with permissionless decentralized finance networks.

The architecture allows tokenized equities to interact with open blockchain networks while remaining tied to their underlying securities within regulated markets. In practical terms, this means investors in eligible jurisdictions could move tokenized stocks between institutional trading environments and blockchain-based financial applications.

The gateway will also incorporate compliance controls. Payward Services will provide onboarding procedures, including Know-Your-Customer (KYC) and Anti-Money Laundering (AML) checks through the Kraken platform to ensure participants meet regulatory requirements.

xStocks Adoption Surpasses $25 Billion in Volume

The initiative builds on the growing adoption of xStocks, which offer tokenized exposure to publicly traded equities across blockchain ecosystems.

Since launching less than a year ago, xStocks have recorded more than $25 billion in total transaction volume, including over $4 billion settled directly on-chain. The ecosystem currently has more than 85,000 unique holders across supported networks.

Payward also expects to act as the foundational settlement layer for Nasdaq equity token transactions during the initial phase of the rollout.

Related: Kraken Gains Access to Federal Reserve Payment System in First for Crypto Firm

Nasdaq’s New Tokenized Equity Model

The initiative supports Nasdaq’s new issuer-focused tokenization model, which puts public companies at the center of the tokenized equity system.

The design aims to keep traditional market protections, such as price discovery, transparency, and investor rights, while allowing shares to exist as programmable digital assets on blockchain networks. Under this model, blockchain records could be directly linked to a company’s official share registry, meaning transferring a token would also transfer ownership of the underlying stock.

Nasdaq submitted its tokenization proposal to the U.S. Securities and Exchange Commission in September 2025. The plan also aligns with the regulator’s 2026 staff statement that treats tokenized equities the same as traditional shares under federal law.

Toward Always-On Global Markets

Both firms say the partnership is part of a broader effort to modernize market infrastructure for a financial system that increasingly operates around the clock.

According to Payward co-CEO Arjun Sethi, tokenization can transform equities into programmable financial instruments capable of moving across multiple trading venues, financial applications, and blockchain networks while maintaining regulatory protections.

Nasdaq President Tal Cohen said the exchange believes tokenization could expand global access to U.S. equities while strengthening the connection between public companies and their investors.

Nasdaq expects its equity token design and related distributed ledger technology services to become operational in the first half of 2027. The development marks a major step toward integrating traditional capital markets with blockchain-based financial infrastructure.