Nasdaq partners with Kraken for its tokenized stock plans

• Key insight: Nasdaq is using Kraken’s infrastructure to prepare for tokenizing stocks upon SEC approval of the plan.
• What’s at stake: Multiple stock trading platforms and financial institutions are moving forward to tokenize securities and assets for 24/7 trading.
• Expert quote: “Partnerships with digital asset pioneers give Wall Street giants access to the underlying infrastructure without having to build it.” —Coin Bureau’s Nic Puckrin

Nasdaq has announced that Kraken’s parent company will be a distribution partner for the tokenized securities trading offering it’s developing, even as the global exchange awaits SEC approval for the initiative.

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The global exchange announced Monday that it is partnering with Payward, parent company of global crypto platform Kraken, to create an “equity token design” for public companies.

A tokenized real-world asset, such as a stock, is a unique digital representation of an asset that is stored on a distributed ledger as a “token.” These tokens can be traded in off-hours with blockchain-based settlement options, and the technology is paving the way for 24/7 trading options across capital markets.

Other stock trading platforms, such as NYSE and DTCC, are also developing options for 24/7 tokenized securities trading powered by distributed ledger technology.

Nasdaq previously filed a proposal with the Securities and Exchange Commission last September to “amend the Exchange’s rules to enable the trading of securities on the Exchange in tokenized form.”

Last week, Kraken became the first crypto exchange to receive a limited-purpose Fed master account. Granted by the Federal Reserve Bank of Kansas City, the account permits Kraken to settle U.S. dollar transactions directly on Fedwire without routing funds through an intermediary bank.

Nic Puckrin, co-founder of Coin Bureau and digital market analyst, told American Banker that partnering with Kraken in particular gives Nasdaq an opening to the market share of retail crypto traders, who will be particularly open to the idea of 24/7 trading.

“The crypto industry has been talking about the democratization of finance for years,” he said. “This is how it happens. When a retail trader in Manila or Lagos can buy U.S. equities the same way as a trader on Wall Street, that’s a big deal.”

According to exclusive research from American Banker’s upcoming 2026 Value of On-Chain Survey, over half of the 105 financial institutions surveyed are either discussing or are in some phase of launching tokenization of real-world assets in some form.

“Tokenization has the potential to unlock the benefits of an always-on financial ecosystem, enhancing how investors access markets [and] how issuers engage with shareholders,” said Nasdaq president Tal Cohen. “This issuer‑sponsored approach for tokenized equity securities is designed to empower public companies and enhance global accessibility to U.S. equity markets.”

Puckrin noted that tokenized shares typically give holders of the “tokens” the same rights as investors in the underlying securities, a fact that has become a point of contention during other tokenized stock launches like Robinhood’s in June of last year. Shortly after the trading platform launched its stock tokens, including for companies like OpenAI and SpaceX, OpenAI distanced itself from the product and issued a statement on X asserting that “These ‘OpenAI tokens’ are not OpenAI equity. We did not partner with Robinhood, were not involved in this, and do not endorse it.”

Nasdaq will facilitate the tokenization of equities under its upcoming system, according to a company statement. The global exchange platform asserts that this will allow public issuers to have more control over their shares in tokenized form.

Pending SEC approval, Nasdaq intends to launch its tokenized trading options in the first half of 2027, according to a company statement.

Puckrin believes that Nasdaq’s partnership with Kraken is a sign that Wall Street and digital assets are starting to converge into a single financial system. 

“Digital asset firms have been after Wall Street’s legitimacy for years,” he said. “Now, partnerships with digital asset pioneers give Wall Street giants access to the underlying infrastructure without having to build it.”

However, increases in price volatility could be an unintended consequence of moving traditional markets to 24/7 trading via tokenization.

“Extended hours don’t automatically mean smoother prices, because thinner liquidity during off-peak windows can amplify price swings,” Puckrin explained. “This is what we’ve seen with crypto over and over again on the weekend in recent months. During the transition period, when some assets trade around the clock but others don’t, we could see unusual correlations and volatility spillovers that are hard to model. 

“This can be solved with circuit breakers, liquidity requirements and coordination across exchanges, but technology alone isn’t enough to magically create a smooth ‘always-on’ trading experience,” he continued.