Nasdaq said it will work with cryptocurrency exchange Kraken to develop a system for issuing and trading tokenized versions of stocks and other exchange-traded products, The Wall Street Journal reported.
Under the plan, tokenized shares would give investors the same corporate governance rights as ordinary shareholders, including proxy voting and receiving dividends. Nasdaq said the plan will focus on automating some processes through blockchain technology to improve the efficiency of corporate actions such as dividend payments and proxy voting. The platform is expected to launch in early 2027.
Kraken will serve as distribution partner for the project. Through this arrangement, Kraken’s clients outside the United States, particularly in Europe and other international markets, will have access to one-for-one tokenized versions of public company shares.
The effort builds on a proposal Nasdaq filed with the U.S. Securities and Exchange Commission in September seeking approval to allow tokenized versions of its listed stocks and exchange-traded products to trade on exchanges alongside traditional stocks.
In the proposal, both tokenized and traditional versions would be settled through a depository trust to ensure they remain fungible.
Last week, exchange operator ICE made a strategic investment in OKX, valuing the exchange at $25 billion and signed an agreement to offer new tokenized stock and crypto futures products.
