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Nasdaq is set to collaborate with Kraken to distribute tokenized representations of public stocks globally as the exchange aims to integrate blockchain infrastructure into conventional markets.
Nasdaq partners with Kraken(Dries Buytaert/CC BY-NC 4.0)
Key points:
- Kraken will provide one-to-one tokenized versions of public company stocks to clients in Europe and other global markets.
- Nasdaq asserts that holders of tokens will maintain the same governance rights as traditional shareholders, which include voting and dividends.
- This initiative is an extension of Nasdaq’s proposal to the SEC to permit tokenized forms of listed stocks and ETFs to trade alongside conventional shares.
As reported by the Wall Street Journal, Nasdaq will collaborate with the cryptocurrency exchange Kraken to establish a framework for the issuance and trading of tokenized versions of stocks and other exchange-traded products.
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The proposed tokenized shares would afford investors the same corporate governance rights as typical stockholders, which include participation in proxy voting and entitlement to dividends. Nasdaq indicated that this initiative will prioritize enhancing the efficiency of corporate actions, such as dividend distributions and proxy voting, by automating segments of the procedure through blockchain technology. The platform is anticipated to launch in early 2027.
Kraken will serve as the distribution partner for this initiative. This collaboration will enable one-to-one tokenized versions of public company shares to be accessible to Kraken’s clients beyond the United States, particularly in Europe and other global regions.
This endeavor builds on a proposal Nasdaq presented to the U.S. Securities and Exchange Commission in September, seeking authorization to allow tokenized versions of its listed stocks and exchange-traded products to trade alongside conventional shares on the exchange.
In that proposal, both the tokenized and standard versions would be settled through the Depository Trust to guarantee their interchangeability.
Recently, exchange operator ICE made a strategic investment in OKX, valuing the exchange at $25 billion, and entered into an agreement to offer new tokenized stocks and crypto futures products.
