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On March 9, Nasdaq announced a partnership with Payward — the parent company of Kraken — to build tokenization infrastructure. The system uses Payward's xStocks framework to move securities between traditional trading platforms and blockchain networks. In a same-day statement, Nasdaq said it plans to launch an "equity token design" — a model that tokenizes equities while keeping public companies in control of ownership rights, governance, and transparency.
How the system works
Payward describes the deal as a bridge between regulated market infrastructure and public blockchain networks. In this setup, xStocks provides the on-chain layer, Payward Services handles KYC and AML checks through the Kraken platform, and Payward acts as the primary settlement layer in jurisdictions where xStocks can already be traded. As Reuters notes, the move comes as major exchanges and crypto platforms try to bring tokenized equities into mainstream market infrastructure rather than treat them as separate crypto products.
Regulatory context and current limits
The regulatory background matters here. Nasdaq says its new model builds on a rule change filed with the SEC in September 2025 that would allow securities to trade in tokenized form on the exchange. In January 2026, SEC staff published a statement that separated issuer-sponsored tokenized securities from those created by third parties, and confirmed that all such instruments remain subject to federal securities law. This distinction is important: Nasdaq says its model will connect blockchain records directly to an issuer's official share registry, while Kraken's current xStocks disclosure states that xStocks holders do not own the underlying shares and have no voting rights or legal claims on them.
For issuers, Nasdaq says the model is designed to preserve their control over corporate actions, proxy voting, and shareholder communication. For investors and platforms, the announcement does not mean an immediate wide launch: Payward's materials describe infrastructure and settlement roles in eligible jurisdictions only, and Kraken's disclosure confirms that xStocks are currently available in select countries only and are not accessible in the US, Canada, the UK, or Australia.
