Nasdaq has partnered with payment technology company Payward (Kraken's parent company) to jointly develop a tokenized stock trading system, promoting the deep integration of traditional securities and blockchain technology. According to the plan, tokenized stocks will exist in digital form on the blockchain while fully retaining shareholder rights, including dividend rights and voting rights in company decisions, ensuring that their economic and legal status is completely equivalent to traditional stocks.
The application of blockchain technology is expected to simplify corporate action processes, such as dividend distribution and proxy voting. By using smart contracts to automate operations that originally relied on complex back-end systems, efficiency can be improved and operating costs reduced.
Kraken will serve as the primary distribution channel, targeting international users outside the United States, especially in regions with more active digital asset regulatory environments such as Europe, to provide trading services for these tokenized stocks. This move aims to leverage the global reach of crypto platforms to expand the digital application scenarios of traditional stock assets.
Previously, in September of this year, Nasdaq submitted an application to the U.S. Securities and Exchange Commission (SEC), requesting approval to introduce tokenized stocks and exchange-traded products into the existing trading system. It also plans to achieve seamless settlement with traditional securities through the infrastructure of the Depository Trust & Clearing Corporation (DTCC), ensuring that the two types of assets are mutually convertible.
This move also echoes the overall industry trend. For example, the crypto exchange OKX is valued at approximately $25 billion and is planning to launch tokenized stocks and crypto futures products. If regulatory approval is obtained, Nasdaq's platform may become a milestone case in the integration of traditional finance and blockchain finance.