Nasdaq Chooses Kraken’s Payward as Settlement Layer for New Tokenized‑Equities Platform
March 9, 2026 – Nasdaq announced a partnership with Payward, the parent company of cryptocurrency exchange Kraken, to serve as the primary settlement provider for its upcoming equity‑token design. The collaboration is intended to bridge the gap between regulated, permissioned markets and the broader decentralized‑finance (DeFi) ecosystem through Nasdaq’s xStocks tokenisation platform.
What the partnership entails
- Gateway between market types – Nasdaq will integrate its existing infrastructure with xStocks, the tokenisation solution originally built by Kraken and the fintech firm Backed. The joint gateway will allow eligible participants to move tokenised shares between a regulated exchange environment and permission‑less blockchain networks.
- Compliance and settlement – Payward will handle Know‑Your‑Customer (KYC) and anti‑money‑laundering (AML) procedures for onboarding users. In jurisdictions where xStocks is approved – notably outside the United States – Payward will act as the settlement layer for transactions involving Nasdaq‑issued equity tokens.
- Issuer‑centric design – Nasdaq’s token model places the issuing company at the centre of the tokenisation process, preserving shareholder rights, regulatory safeguards and price integrity while enabling cross‑chain interoperability.
Context and recent developments
Nasdaq first filed a formal request with the U.S. Securities and Exchange Commission in September 2025 to launch tokenised equities, highlighting the need for robust settlement and infrastructure solutions. The current partnership addresses those concerns by leveraging Kraken’s experience in both crypto‑centric services and traditional finance.
Kraken has been expanding its tokenised‑equity capabilities. In the past week the firm launched a cross‑chain trading venue for xStocks on Ethereum and Solana, and its state‑regulated banking subsidiary secured a limited‑purpose Federal Reserve master account, reinforcing its standing in the regulated financial space.
Industry reaction
Nasdaq President Tal Cohen emphasized that tokenisation could “unlock the benefits of an always‑on financial ecosystem, enhancing how investors access markets and how issuers engage with shareholders.” Arjun Sethi, co‑CEO of Payward, added that the aim is to make equities natively interoperable across trading venues while maintaining the protections that traditional markets provide.
Analysis
The collaboration signals a maturing convergence between legacy capital markets and DeFi infrastructure:
- Regulatory compliance as a differentiator – By delegating KYC/AML and settlement to a regulated entity, Nasdaq mitigates a key obstacle that has slowed broader adoption of tokenised securities.
- Geographic limitation – The settlement service is limited to jurisdictions where xStocks is authorised, explicitly excluding the U.S. market for now. This reflects the current regulatory climate and suggests a phased rollout strategy.
- Cross‑chain functionality – Integration with both Ethereum and Solana positions the platform to tap into the liquidity of the two largest smart‑contract ecosystems, potentially accelerating trading volumes for tokenised equities.
- Issuer empowerment – The design’s focus on giving issuers control over tokenised shares could attract companies seeking more direct engagement with shareholders, a feature that traditional custodial models lack.
Key takeaways
- Settlement provider: Payward (Kraken) will handle settlement and compliance for Nasdaq’s tokenised equity trades in eligible markets.
- Bridge to DeFi: The partnership creates a conduit between regulated exchanges and permission‑less blockchain networks.
- US exclusion: Current rollout does not include the United States, reflecting ongoing regulatory constraints.
- Cross‑chain support: xStocks will operate on both Ethereum and Solana, expanding accessibility for traders.
- Issuer‑first approach: Nasdaq’s token design gives public companies greater control over how their shares are tokenised and managed.
The Nasdaq‑Kraken alliance marks a significant step toward mainstreaming tokenised equities, illustrating how traditional exchanges are increasingly turning to established crypto infrastructure to meet the evolving demands of a digital‑first investor base.
Source: https://thedefiant.io/news/cefi/nasdaq-taps-kraken-as-settlement-layer-for-tokenized-stock-initiative
