Nasdaq said it will work with crypto exchange Kraken to develop a system for issuing and trading tokenized versions of stocks and other exchange-traded products, according to a press release.
Under the plan, tokenized shares will give investors the same corporate governance rights as common shareholders, including voting in proxies and receiving dividends. Nasdaq said the initiative will focus heavily on making corporate actions, such as dividend payments and proxy voting, more efficient by automating parts of the process through blockchain technology. The platform is expected to launch in early 2027.
Kraken will act as distribution partner for the project. Through the arrangement, one-to-one tokenized versions of public company shares would be made available to Kraken’s clients outside the US, particularly in Europe and other international markets.
The effort builds on a proposal Nasdaq filed with the US Securities and Exchange Commission in September to allow tokenized versions of its listed stocks and exchange-traded products to trade alongside traditional stocks on the exchange.
In this proposal, both the tokenized and conventional versions will be settled through the Depository Trust to ensure that they remain interchangeable.
Last week, exchange operator ICE made a strategic investment in OKX, valuing the exchange at $25 billion, as it signed an agreement to offer new tokenized shares and crypto futures products.
Separately, Nasdaq also announced a partnership with Boerse Stuttgart Group’s tokenized settlement platform Seturion to connect its European trading venues to infrastructure designed to support trading and settlement of tokenized securities.
UPDATE: (March 9, 11:41 UTC) Adding the final section on Nasdaq’s partnership with Boerese Stuttgart Group.
UPDATE: (March 9, 13:18 UTC) Changing quote to Kraken’s press release.
