Crypto exchange Kraken has partnered with financial giant Nasdaq to enable a gateway that allows traders to exchange tokenized shares from regulated environments into decentralized finance (DeFi) ecosystems.
Nasdaq, which operates the world’s second-largest stock market, is developing a new stock token design that is expected to go live in the first half of 2027.
The new partnership with Kraken will leverage the exchange’s xStocks, tokenized versions of real stocks and exchange-traded funds (ETFs).
Kraken says the new gateway will connect permissioned stock markets to permissionless decentralized financial networks in jurisdictions where xStocks are offered.
Arjun Sethi, the exchange’s co-CEO, notes that tokenized shares can serve as collateral for spot markets, cross-margin trading, derivatives, perpetual futures and financing.
“Our partnership with Nasdaq is important because tokenization alone does not create markets. Markets require liquidity risk management and reliable infrastructure. By combining Nasdaq’s leadership in the regulated equity markets with Payward’s digital asset infrastructure and Kraken’s global trading platform, we are helping to build the liquidity layer risk engine and financial applications that enable tokenized equities to function within a more global, continuous and capital-efficient financial system.”
According to Kraken, xStocks has clocked a total transaction volume of more than $25 billion since its launch last year.
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Generated image: Midjourney