Paymentparent company kraken Established a strategic partnership with cryptocurrency exchange Nasdaq Creating an advanced stock conversion gateway. This system provides permissioned tokenized equity markets. decentralized Blockchain networks powered by Payward’s xStocks framework.
The aim is to enable the transfer of tokenized shares between corporate companies. trade environments and outdoor DeFi Platforms in jurisdictions where the service is legally offered.
The collaboration builds on the success of xStocks, which provides blockchain-based access to publicly traded stocks.
Since its launch less than a year ago, the product has generated over $25 billion in total transaction volume, including more than $4 billion paid directly on-chain.
It has also attracted more than 85,000 unique holders across supported networks, cementing its position as the leading infrastructure for on-chain equity tokens.
Nasdaq’s equity token framework, scheduled to become operational in the first half of 2027, takes a new approach to the tokenization of shares.
The design preserves full control of the issuer, complies with current regulatory requirements and protects the fundamental rights of the company’s shareholders.
Payward will act as the primary payment layer for these transactions in eligible regions, while the services division will handle these transactions KYC and AML compliance to meet onboarding standards.
At the heart of the initiative is the xStocks-powered gateway.
It serves as Nasdaq’s permissionless infrastructure layer supporting issuer-sponsored tokens, enabling interaction between regulated capital markets and decentralized ecosystems.
Customers in approved jurisdictions will be able to move tokenized It unlocks new levels of liquidity and flexibility by fluidly creating shares between permissioned institutional platforms and public blockchain networks.
Both organizations emphasize that tokenization can fundamentally modernize capital markets.
By combining Nasdaq’s built-in market infrastructure With Payward’s blockchain expertise, the gateway promotes greater global reach, enhanced programmability and improved operational efficiency for securities trading and clearing.
Arjun SethiCo-CEO of Payward and krakenemphasized its transformative effect.
He noted that tokenization turns stocks into programmable tools that can operate in regulated venues and open networks.
Traditional brokerage systems often limit benefit to fundamental-sided risk or platform-specific margin, leading to fragmented liquidity and underutilized capital.
With xStocks, stocks gain native interoperability across trading venues, financial apps, and other platforms. block chain ecosystems while protecting issuer rights, regulatory protections, and price integrity.
Sethi demonstrated the capital efficiency benefits using a simple portfolio utilization model: utilization equals total market risk divided by required collateral.
In siled systems, this rate remains artificially low because each location requires separate coverage.
Interoperability changes the equation, allowing the same collateral base to support multiple strategies simultaneously.
Total risk then becomes the sum of positions across venues, all managed by a unified real-time risk framework.
For international investors, this expands access to public markets where traditional brokerage options are limited.
In mature markets, it increases efficiency by allowing equity assets to dynamically serve as spot collateral. tradecross margin setups, derivatives, perpetual futures and financing environments.
As assets move programmatically, settlement frictions are reduced and capital flows more effectively between strategies.
The partnership integrates Nasdaq’s leadership in regulated equities with Payward’s digital asset infrastructure and Kraken’s global trading platform.
It aims to create the necessary liquidity layer and risk management. toolsand practices for a more connected, sustainable, and capital-efficient financial system.
Nasdaq It expects equity tokens and related distributed ledger technology services to launch in the first half of 2027. This alliance signals a step forward in convergence traditional finance and blockchain. Payward and Nasdaq create interoperable pathways for tokenized stocks Floor It forms the basis of developments in capital markets.
