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Nasdaq has announced a collaboration with Payward, the parent company of cryptocurrency exchange Kraken, to develop infrastructure that supports the tokenization of financial assets. The initiative aims to enable securities to move from traditional institutional trading systems onto blockchain networks. The exchange operator is also working with Germany-based Boerse Stuttgart to support settlement of blockchain-based equities in Europe. The move comes as global exchanges and trading platforms increase efforts to introduce tokenized securities and expand blockchain-based market infrastructure.
Nasdaq has announced a collaboration with Payward, the parent company of cryptocurrency exchange Kraken, to build infrastructure that supports the tokenization of financial assets. The initiative aims to benefit from growing interest in blockchain-based equities and digital asset markets. Advertisement
Tokenization refers to the process of converting traditional financial assets such as bank deposits, stocks, bonds, funds and even real estate into digital tokens that can be traded on blockchain networks. These networks function as distributed ledgers that record and verify transactions involving digital assets.
The partnership will see Nasdaq use Payward's xStocks platform, which focuses on tokenization technology. Through this system, institutional clients will be able to transfer securities from traditional trading infrastructure onto blockchain networks. The objective is to allow these assets to be represented and traded in tokenized form while remaining connected to regulated financial markets.
The exchange operator had already taken steps in this direction in the past year. Nasdaq previously sought approval from the U.S. Securities and Exchange Commission to allow securities trading either in traditional digital format or in tokenized form. That move reflected increasing interest among market participants in integrating blockchain technology with existing capital market infrastructure.
Institutional adoption of digital asset systems has accelerated after the passage of the GENIUS Act in the United States last year. While the law provided some clarity for digital asset development, regulators and policymakers continue to debate additional rules for blockchain-based securities markets.
Nasdaq also revealed a separate partnership with German exchange operator Boerse Stuttgart. Under this collaboration, Nasdaq will integrate with the company's tokenization settlement platform to support trading and settlement of blockchain-based equities across Europe.
Tokenization has been gaining attention among major financial platforms globally. The parent company of NYSE, Intercontinental Exchange, recently stated that it is seeking regulatory approval for a blockchain-based system that would allow tokenized securities to trade around the clock with on-chain settlement.
Several trading platforms have already launched similar products in international markets. Firms including Robinhood, Gemini and Kraken have introduced tokenized stocks in parts of Europe. Meanwhile, Coinbase and fintech startup Dinari are pursuing regulatory approvals to launch comparable offerings in the United States.
Despite these developments, investor sentiment around cryptocurrencies and related digital assets remains divided. Bitcoin prices have been hovering near levels seen before the presidential election victory of Donald Trump in 2024, highlighting ongoing uncertainty about how cryptocurrencies should fit into long-term investment portfolios.
Nasdaq's leadership indicated that tokenization could significantly change how financial markets operate. The exchange's president, Tal Cohen, explained that the technology could help create an always-active financial ecosystem and improve how investors access markets and how companies interact with shareholders. According to him, tokenization could also enhance processes such as corporate actions, proxy voting and broader shareholder engagement.
Nasdaq said its plans for tokenized securities will initially focus on exchange-traded products and equities, with particular attention on improving corporate governance processes and investor participation through blockchain-based systems.
Source Reuters
5th Jun, 2025
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