Payward Partners with Nasdaq to Launch xStocks Gateway Connecting Tokenized Equity Markets

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• Nasdaq and Payward have partnered to build infrastructure connecting tokenized equity markets with blockchain networks.
• Kraken’s xStocks framework will power the system that enables equities to move between regulated markets and DeFi ecosystems.
• xStocks has already recorded over $25 billion in transaction volume and more than 85,000 holders since launch.
• Nasdaq’s equity token design is expected to become operational in H1 2027.

Nasdaq and Payward Partner to Advance Tokenized Equity Markets

Nasdaq has partnered with Payward, the parent company of crypto exchange Kraken, to develop infrastructure that connects traditional equity markets with blockchain-based decentralized finance networks. The collaboration aims to create a new framework that allows tokenized equities to interact with both regulated financial systems and open blockchain ecosystems.

The partnership will focus on building an equities transformation gateway, designed to enable tokenized shares to move between institutional trading environments and decentralized financial networks. The system will combine Nasdaq’s regulated market infrastructure with Kraken’s tokenized equity framework known as xStocks.

Both companies say the initiative could modernize how equities are traded and settled, while improving global accessibility and operational efficiency across financial markets.

xStocks Growth Signals Rising Interest in Tokenized Equities

Kraken introduced xStocks as a tokenized equity product that allows blockchain-based exposure to publicly traded shares. Since launching less than a year ago, the product has seen significant adoption across blockchain ecosystems.

According to Payward, xStocks has generated more than $25 billion in total transaction volume, including over $4 billion settled directly on-chain. The ecosystem currently includes more than 85,000 unique holders across supported blockchain networks.

The framework functions as the infrastructure layer within the new partnership, enabling tokenized equities to interact with decentralized applications and blockchain networks while remaining linked to underlying securities traded in regulated markets.

Gateway to Connect Traditional Markets and DeFi

The planned equities transformation gateway will enable tokenized equities to move between regulated markets and decentralized financial systems in jurisdictions where the service is permitted.

Through this architecture, clients will be able to swap tokenized equities between permissioned institutional markets and permissionless DeFi networks. The system is designed to create interoperability between traditional financial infrastructure and blockchain-based financial applications.

Payward stated that its xStocks framework will serve as the core infrastructure for the open blockchain ecosystem, ensuring that tokenized equities remain aligned with the underlying securities traded within regulated environments.

Compliance and Settlement Infrastructure

To support regulatory compliance, Payward Services will manage identity verification and onboarding processes for users accessing tokenized equities through the Kraken platform. This will include Know Your Customer (KYC) and Anti-Money Laundering (AML) checks for participants interacting with the gateway.

In jurisdictions where tokenized equities are available, Payward is expected to act as the primary settlement layer for transactions involving Nasdaq’s equity token design during the initial phase of the project.

This arrangement will provide the infrastructure required to process tokenized equity transactions securely while maintaining compliance with existing regulatory frameworks.

Nasdaq’s Equity Token Design Expected by 2027

Nasdaq is currently developing a new equity token framework intended to support the tokenization of company shares while preserving issuer control and existing shareholder rights.

The system is designed to operate within current regulatory structures while allowing equities to function on distributed ledger technology networks. Nasdaq expects its equity token design and related DLT-based services to become operational in the first half of 2027.

Expanding the Role of Tokenized Assets

Both Nasdaq and Payward believe tokenization could significantly reshape capital markets by improving settlement efficiency, liquidity access, and programmability for financial assets.

By enabling equities to operate across both regulated exchanges and blockchain networks, the partnership aims to build infrastructure that allows traditional securities to integrate with decentralized financial applications while maintaining compliance and market integrity.

As tokenized asset markets continue to grow, the companies said the new system could serve as a foundation for connecting institutional capital markets with global on-chain financial networks.