Nasdaq is moving deeper into the digital asset sector through a new collaboration designed to connect traditional equity markets with blockchain infrastructure.
The exchange operator has partnered with xStocks, a tokenized equities framework developed with Payward — the parent company of crypto exchange Kraken — to create a bridge between regulated stock markets and decentralized blockchain networks.
The initiative introduces an infrastructure layer that allows tokenized equities to move between traditional capital markets and blockchain ecosystems. Under the framework, Nasdaq-listed securities can be represented as tokens while maintaining their legal status as equity securities.
The project will integrate with the Solana blockchain through the xStocks model, allowing tokenized equities to interact with decentralized finance (DeFi) applications in eligible jurisdictions.
The goal is to provide a regulated pathway for digital versions of stocks to operate across blockchain-based systems without compromising investor protections or issuer rights.
Key Takeaways
- Nasdaq and xStocks are partnering to enable regulated equities to operate seamlessly on blockchain networks like Solana.
- Tokenized shares will remain legally equivalent to traditional equities while allowing programmable financial functionality.
- The infrastructure allows equities to move efficiently between trading, financing, and derivatives environments.
- Nasdaq’s issuer-sponsored token model preserves shareholder rights, governance, and corporate actions.
- The initiative supports 24/7 market access and greater global investor participation while maintaining regulatory compliance.
A Gateway Between Traditional Markets and Blockchain
The xStocks framework is designed to function as a neutral infrastructure layer that connects the tokenized equity ecosystem with public blockchain networks. By turning equities into programmable digital assets, the system allows shares to move between trading, financing, and derivatives environments more efficiently.
Tokenized equities under this model could be used as collateral in digital finance platforms, enabling faster settlement and improved capital mobility. The infrastructure also allows investors and institutions to transfer equity tokens between regulated trading venues and decentralized blockchain networks.
Arjun Sethi, Co-CEO of Payward and Kraken, said the technology could significantly improve the movement of capital between financial systems.
For international investors, the system could provide greater access to U.S. equities through blockchain-based channels, particularly in regions where traditional brokerage distribution is limited.
Nasdaq’s Issuer-Sponsored Token Model
Alongside the partnership, Nasdaq revealed plans for a new “equity token design” that places public companies in control of their tokenized shares.
Rather than allowing third parties to create synthetic versions of stocks, Nasdaq’s approach allows the companies themselves to sponsor tokenized versions of their equity. This guarantees that the issuer maintains direct control over governance rights, shareholder engagement, and corporate actions.
Tal Cohen, President of Nasdaq, said tokenization could reshape how investors access financial markets.
Cohen added that keeping public companies directly involved in the tokenization process helps preserve transparency and market integrity while expanding access to global investors.
Under the model, tokenized shares will be recorded directly in the issuer’s official share registry. This ensures that the transfer of a token represents the transfer of the underlying security itself, maintaining the same legal rights as traditional equities.
Integration With Existing Market Infrastructure
Nasdaq’s tokenization strategy is built to operate within the current regulatory and settlement framework used in U.S. financial markets.
The exchange filed a proposal with the U.S. Securities and Exchange Commission (SEC) in September 2025 outlining how tokenized equities could be traded and settled through existing systems.
The proposal includes settlement in token form through the Depository Trust & Clearing Corporation (DTCC), which currently handles the majority of U.S. securities clearing and settlement.
Regulatory clarity has improved in recent months. In 2026, the SEC released a staff statement confirming that tokenized equities are treated the same as traditional securities under federal law. This classification allows exchanges and financial institutions to explore tokenization while maintaining compliance with existing regulations.
Nasdaq’s infrastructure will combine blockchain record-keeping with traditional identity and regulatory frameworks, ensuring transparency, consolidated liquidity, and price discovery across markets.
Building an Always-On Equity Market
One of the motivations behind tokenization is the shift toward continuous trading across global markets. Traditional equity trading follows set market hours, but blockchain networks operate 24/7.
Nasdaq believes digital tokens could support a future where equity markets operate around the clock. By enabling equities to exist in programmable digital form, the system could support real-time transfers, faster settlement cycles, and global participation.
The xStocks gateway being developed with Payward is intended to help facilitate that transition. The infrastructure will allow tokenized equities to move between permissioned trading venues and permissionless blockchain networks while maintaining regulatory compliance.
For U.S. investors, the technology could also improve collateral efficiency by allowing tokenized stocks to be used across trading and financing workflows. This could reduce operational delays that currently exist in traditional settlement systems.
Early Growth in the xStocks Ecosystem
The xStocks network has already gained traction since its launch. According to project data, the ecosystem has processed more than $25 billion in total trading volume, with approximately $4 billion settled directly on-chain.
The platform has also attracted more than 85,000 token holders participating across its network, suggesting growing interest in tokenized financial assets.
Integrating Nasdaq-listed equities into that ecosystem could significantly expand its reach, especially as institutional players begin exploring tokenized securities.
Next Steps for the Program
Nasdaq plans to continue working with regulators, issuers, and financial infrastructure providers as the tokenized equity framework develops.
Participation in the system will remain voluntary for companies, and further updates will be subject to regulatory review and industry consultation. Nasdaq expects the program to become operational in the first half of 2027, with additional distributed ledger technology services gradually introduced afterward.
If successful, the partnership with xStocks could represent one of the most significant attempts yet to merge blockchain networks with regulated equity markets.
By connecting tokenized shares with decentralized financial systems while maintaining legal and regulatory safeguards, Nasdaq is positioning itself to play a central role in the next phase of digital market infrastructure.
