Kraken & Nasdaq Unite for Tokenized Equity Gateway

Kraken's parent company Payward has partnered with Nasdaq to build an 'equities transformation gateway', a new infrastructure layer that connects regulated tokenized equity markets with permissionless blockchain networks through Kraken's xStocks product.

The partnership will use xStocks to power the permissionless infrastructure behind Nasdaq's planned issuer-sponsored equity token design, which is expected to go live in the first half of 2027. This platform has already processed more than $25 billion in total transaction volume and has over 85,000 unique holders across supported networks.

The gateway will allow eligible users to move tokenized equities between a regulated, permissioned market environment and open on-chain ecosystems. Payward will handle KYC and AML onboarding for participants accessing the bridge through Kraken, and will serve as the primary settlement layer for transactions tied to Nasdaq's equity token design during an initial period in jurisdictions where xStocks are already available.

According to Arjun Sethi, co-CEO of Payward and Kraken, the current model leaves capital trapped inside siloed venues, fragmenting liquidity and limiting the potential utility of equity holdings. With xStocks, they aim to make equities natively interoperable across trading venues, financial applications, and blockchain networks while preserving issuer rights, regulatory protections, and price integrity.