The crypto exchange Kraken is partnering with the financial giant Nasdaq to enable a gateway that would let traders swap tokenized equities from regulated environments into decentralized finance (DeFi) ecosystems.
Nasdaq, which operates the world’s second-largest stock market, is developing a new equity token design expected to go live in the first half of 2027.
The new partnership with Kraken will utilize the exchange’s xStocks, tokenized versions of real-world equities and exchange-traded funds (ETFs).
Kraken says the new gateway will connect permissioned equity markets with permissionless decentralized financial networks in jurisdictions where xStocks are offered.
Arjun Sethi, the exchange’s co-CEO, notes that tokenized equities can operate 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 regulated equity markets with Payward’s digital asset infrastructure and Kraken’s global trading platform, we are helping build the liquidity layer risk engine and financial applications that allow tokenized equities to function within a more global, continuous and capital-efficient financial system.”
xStocks have clocked more than $25 billion in total transaction volume since launching last year, according to Kraken.
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