In a new integration between traditional finance and the DeFi world, Nasdaq and Kraken have just announced a partnership to build a bridge that will enable the transfer of tokenized stocks between regulated markets and blockchain networks. The initiative will leverage Kraken’s existing xStocks infrastructure, which, according to the company, has handled over $25 billion in transaction volume and recorded over $4 billion in on-chain settlements among approximately 85,000 holders.
How will it work?
Kraken stated that the collaboration focuses on a “gateway for stock transformation” that combines Nasdaq’s stock token design with Kraken’s distribution and settlement capabilities. Nasdaq’s token framework aims to preserve issuer control and shareholder rights (proxy voting and dividend receipt are explicitly maintained) and operate within existing regulatory frameworks.
According to the agreement, Payward (Kraken’s parent company) will act as the primary distribution partner and settlement layer for transactions in eligible jurisdictions. Nasdaq indicated that its stock token design is expected to be operational in the first half of 2027.
Kraken’s xStocks is already a platform operating outside the US, expanded with the acquisition of Backed Finance, the original issuer of xStocks. The companies confirmed that this new platform will launch in the first half of 2027.
For users, this represents a significant advancement in on-chain investment possibilities. Upon launch, users will be able to access tokenized versions of shares from companies like Amazon, Alphabet, Coca-Cola, and many other pillars of traditional finance. And best of all, without leaving the blockchain.
Furthermore, those who acquire tokenized shares will have access to all the benefits of their traditional counterparts, such as dividend payments and proxy voting. This applies primarily to users outside the United States, such as European investors looking to get involved in one of the world’s most important markets in a 100% on-chain manner.
