- Nasdaq aims to start a tokenized asset service with Kraken as its distribution partner.
- The framework will give tokenized shares the same rights as traditional equities, including proxy voting and dividend payments.
- The initiative follows Nasdaq’s SEC proposal in September last year to allow tokenized versions of listed stocks and ETFs.
Nasdaq (NDAQ) is reportedly planning to launch a tokenized asset service with Kraken as its distribution partner.
According to a Wall Street Journal report, Nasdaq is planning to let people buy and sell tokenized stocks and other products on its exchange. The exchange operator from New York said the goal of the project is to give blockchain-based shares the same rights as regular shares.
The exchange reportedly said that the tokenization plan will focus on features that support corporate governance, such as making proxy voting easier and automating dividend payments. The framework is set to launch in early 2027. It will allow tokenized share owners to retain the same rights as owners of the underlying securities.
Through Kraken, which will serve as a distribution platform, customers in Europe and other global markets will have access to one-to-one tokenized versions of public company stocks such as Tesla (TSLA) and Nvidia (NVDA).
Tal Cohen, president of Nasdaq, told The Wall Street Journal that the initiative was designed to focus on the needs of corporate issuers while modernizing market infrastructure. He said much of the earlier tokenization efforts had overlooked issuers, adding, “Most of tokenization has happened without the issuers in mind. Our effort is focused on the issuer.”
Tokenized Securities Push Expands
This initiative adds momentum to the proposal Nasdaq submitted to the U.S. Securities and Exchange Commission (SEC) on Monday, seeking approval to allow tokenized versions of its listed stocks and exchange-traded products to trade alongside traditional shares.
Under the proposal, both the tokenized and conventional versions would be settled through the Depository Trust to ensure they remain interchangeable, the NASDAQ President wrote.
The push toward tokenized markets also gained traction across other exchanges. Last week, exchange operator ICE made a strategic investment in OKX, a crypto platform, valuing the exchange at $25 billion as the companies signed a deal to offer tokenized stocks and crypto futures products.
Nasdaq also announced a partnership with Boerse Stuttgart Group’s tokenized settlement platform, Seturion, on Monday, to connect its European trading venues to infrastructure supporting the trading and settlement of tokenized securities.
Over the last couple of years, BlackRock and JPMorgan’s asset-management arm have launched tokenized money-market funds, while Goldman Sachs and Bank of New York Mellon partnered to issue digital tokens representing ownership in similar funds.
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