The collaboration between crypto exchange Kraken and financial giant Nasdaq is set to revolutionize the trading landscape by allowing traders to exchange tokenized equities from regulated environments into decentralized finance (DeFi) ecosystems.
Nasdaq, known for operating the world’s second-largest stock market, is in the process of developing a new equity token design that is expected to launch in the first half of 2027.
This partnership with Kraken will leverage the exchange’s xStocks, which are tokenized versions of real-world equities and exchange-traded funds (ETFs).
Kraken’s new gateway will bridge permissioned equity markets with permissionless decentralized financial networks in jurisdictions where xStocks are available.
Arjun Sethi, co-CEO of the exchange, highlights the potential of tokenized equities to serve as collateral for various financial instruments such as spot markets, cross-margin trading, derivatives, perpetual futures, and financing.
“Our collaboration with Nasdaq is significant because tokenization alone does not create markets. Markets require liquidity, risk management, and robust infrastructure. By combining Nasdaq’s expertise in regulated equity markets with Payward’s digital asset infrastructure and Kraken’s global trading platform, we are paving the way for tokenized equities to operate within a more efficient and interconnected financial system,”
xStocks have already amassed over $25 billion in total transaction volume since their launch last year, according to Kraken.
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