Nasdaq will distribute blockchain-based versions of publicly listed stocks through crypto exchange Kraken.
The partnership extends that push by adding Kraken as a global distribution layer, bridging traditional exchange infrastructure with crypto-native markets.
Sponsored
Sponsored
Why it matters:
- Tokenized stocks settling through existing Depository Trust & Clearing Corporation (DTCC) infrastructure could cut cross-border settlement times and costs for international retail investors.
- Automating proxy voting and dividend distribution via blockchain removes manual intermediaries, reducing corporate action errors and delays.
- A Nasdaq-backed tokenization model sets a precedent that could pressure rival exchanges to accelerate similar programs.
The details:
- The deal targets European and international investors under a framework set to launch in early 2027
- Kraken will offer one-to-one tokenized equities, including high-volume stocks such as Nvidia and Tesla, to customers in Europe and globally.
- Both tokenized and traditional shares will share the same CUSIP identifier, making them interchangeable within Nasdaq’s existing exchange.
- The framework covers all issuers that opt in, not only those listed on Nasdaq.
- Tokenized share holders receive the same governance rights as holders of conventional stock.
The big picture:
- Kraken has expanded aggressively into traditional finance (TradFi).
- The exchange acquired NinjaTrader and tokenized stock provider Backed as part of a six-deal acquisition run over the past year.
- The SEC has yet to grant final approval; the proposal still requires regulatory clearance before the 2027 target date.
