Nasdaq, the New York-based stock exchange operator, said it will partner with crypto exchange Kraken's parent Payward to develop a permissionless infrastructure layer for tokenized equities.
The collaboration, announced jointly on Monday, aims to develop an "equities transformation gateway," powered by the xStocks framework, which will allow tokenized assets to move fluidly between Nasdaq's regulated capital markets and decentralized blockchain networks.
The xStocks framework serves as Kraken's proprietary tokenized equity product and infrastructure layer, designed to provide programmable exposure to publicly traded securities across various blockchain ecosystems. Since its launch less than a year ago, xStocks has surpassed $25bn in total transaction volume, including more than $4bn settled onchain.
Within this new architecture, the framework acts as the bridge connecting regulated, permissioned equity markets with permissionless DeFi networks, enabling assets to move into global onchain financial applications while remaining aligned with underlying securities, the companies said in a statement.
Expected to become operational in the first half of 2027, the framework focuses on preserving issuer control while modernizing post-trade infrastructure. A key feature of the initiative is the transition to 24/7 trading, a move intended to unlock capital that currently sits static within traditional brokerage systems. Beyond round-the-clock access, the gateway is designed to automate corporate actions, such as proxy voting and dividend payments, directly onchain.
The move comes as Wall Street giants accelerate their digital asset strategies following the passage of the GENIUS Act last year. While the initiative promises 24/7 liquidity, Nasdaq emphasizes that the underlying rights of company shares will remain preserved. This issuer-centric approach stands in contrast to existing synthetic derivatives that often fail to convey governance rights to holders.
