Crypto exchange Kraken has partnered with Nasdaq to distribute tokenized stocks. The stock exchange is planning a new Nasdaq equity token design which will enable issuers to opt in. These new tokens are direct issuer tokens, which contrasts with Nasdaq’s September 2025 announcement, and complements it.
For its part, Kraken’s parent Payward previously acquired Backed Finance, which developed xStocks, the popular tokenized stocks offered outside of the US which have been involved in $25 billion of trades. While some of the technology used in xStocks might be used by Kraken for Nasdaq tokens, the offerings are very distinct. That’s especially because xStocks tokens do not provide direct ownership and are structured products. In contrast the Nasdaq tokens will be direct issuances and share the CUSIP with the conventional stock. Additionally, the Wall Street Journal reported that the new tokens will not be limited to Nasdaq issued stocks.
So how does this latest announcement differ from Nasdaq’s September one? Today’s announcement is about enabling issuers to extract the most value out of tokenization with respect to proxy voting, corporate actions and automation. The September announcement focused on trading. A Nasdaq spokesperson told Ledger Insights that the goal of that initiative is to make it very simple for traders. Anyone trading a Nasdaq stock can choose whether they want conventional settlement, or to receive a DTCC format token. The DTCC’s indirect format differs from the ones announced today because the DTCC’s are in fact entitlements rather than direct issuances, given the actual stock is custodied by DTCC entity Cede & Co. However, both the direct and indirect format tokens provide full beneficial ownership rights in the stock.
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