Nasdaq, Kraken Partner for Tokenized Stock Trading

This initiative aims to bridge established stock markets with blockchain platforms, allowing issuers to maintain control over proxy voting and dividends while linking blockchain data to official share ledgers. The move follows recent regulatory developments, including banking regulators easing capital requirements for blockchain-based securities and SEC staff indicating that tokenized shares could be treated as traditional ones if they offer identical rights. Kraken will develop an equities transformation gateway using its xStocks framework to facilitate the flow of tokenized shares between regulated venues and public blockchains, potentially expanding access in regions with limited traditional distribution.

While the framework is designed to be open to any issuer, Nasdaq's plan faces ongoing regulatory scrutiny. A September 2025 SEC filing sought approval for tokenized trading via DTCC, but SEC staff raised concerns in January 2026 regarding certain third-party stock tokens being classified as synthetic products rather than actual shares.

Full implementation remains contingent on SEC approval and the development of necessary market infrastructure.