Payward, the parent company of cryptocurrency exchange Kraken, is partnering with Nasdaq to build a gateway linking regulated equity markets with permissionless blockchain networks.
The initiative will use Kraken's xStocks framework, which allows shares in listed companies to be represented as tradeable tokens on public blockchains, as the infrastructure layer on the decentralised side of the system.
Nasdaq will contribute its issuer-sponsored equity token design and market services, with the exchange's distributed ledger technology expected to become operational in the first half of 2027.
xStocks, which are tokenised representations of equities, have recorded more than $25 billion in total transaction volume since launch, with more than $4 billion settled on-chain and over 85,000 unique holders across supported networks.
Under the arrangement, Payward will act as the primary settlement layer for Nasdaq equity token transactions in eligible jurisdictions.
Arjun Sethi, co-chief executive of Payward and Kraken, said the partnership "upgrades market infrastructure at the asset layer by allowing equities to exist as programmable financial instruments that can operate across both regulated capital markets and open blockchain networks."
Payward Services will handle know-your-customer (KYC) and anti-money laundering (AML) checks for participants using the gateway.
xStocks are issued by Backed Assets (JE) Limited and offered through Payward Digital Solutions Ltd. in Bermuda and Payward Europe Digital Solutions (CY) Ltd. in the European Union.
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The tokens are not registered under the US Securities Act and are unavailable to US persons or residents of the United Kingdom.
The gateway will be accessible to clients in jurisdictions where xStocks are offered and where Payward holds the necessary regulatory approvals.
The recap
- Payward and Nasdaq to build an xStocks-powered equities gateway
- xStocks exceeded $25 billion total transaction volume since launch
- Nasdaq equity token design expected operational beginning H1 2027