After disclosing plans to bring tokenized equities on-chain, the Nasdaq has officially partnered with Kraken, a leading cryptocurrency exchange in the U.S., on Monday, March 9.
Prior to the partnership, the Nasdaq revealed it is planning to build infrastructures that allow equities listed on its marketplace to be utilized as blockchain-based tokens.
As such, it has sent proposals to the U.S. SEC to allow both traditional and tokenized stocks to be based on the same regulatory framework.
Nasdaq to bridge gap between TradFi and blockchain
With this development, Nasdaq is not only redesigning tokenized equities; it is also bridging the gap between traditional finance and the blockchain industry.
With the collaboration, Kraken will become an on-chain trading avenue for tokenized securities while preserving the legal rights and protections associated with the stocks.
Notably, the tokenized securities introduced by the Nasdaq will allow investors who want to buy stocks to access the stock market through crypto exchanges.
This development will not alter their traditional advantages as they will maintain compliance with existing financial regulations while they feature on public blockchains.
Nasdaq joins forces with Payward
As part of the partnership, the Nasdaq revealed it will work with Kraken’s parent company, Payward, to develop what they describe as a “gateway for tokenized equities.”
With the help of Payward, tokenized equities will begin to move seamlessly between regulated financial markets and decentralized blockchain networks.
Following the development, corporate institutions — especially companies — can now issue tokenized versions of their stock and trade them like cryptocurrencies without losing governance rights or shareholder protections.
Dan Burgin
Vladislav Sopov
