Nasdaq partners with Kraken to develop a framework for 24/7 tokenized stock trading, targeting a 2027 launch, focusing on corporate governance like proxy voting
Nasdaq sought approval in September to let investors trade tokenized versions of its listed stocks and other exchange-traded products
Context & Ripple Effects
Nasdaq's work with Kraken follows its earlier request for SEC permission to trade tokenized securities on its exchange, moving the effort from a regulatory proposal toward the operating rules needed for a continuous market.
The emphasis on proxy voting makes clear that tokenization is not only a trading-hours project: a viable version of listed securities must preserve the shareholder-rights processes attached to the underlying instruments.
First-order effects
- Nasdaq and Kraken will jointly define a proposed 24/7 tokenized-stock market framework, with a 2027 target, placing corporate-governance functions such as proxy voting into the design scope.
- Listed-company investors and issuers would need a mechanism to ensure token holders can be recognized in governance workflows if the framework becomes operational.
Second-order effects
- The initiative raises the competitive bar for exchange operators pursuing tokenized securities. NYSE had already outlined a plan to combine its matching technology with blockchain networks for real-time tokenized trading.
- Custodians, brokerages and transfer-agent-style recordkeeping providers may need to support ownership and voting records that remain usable across conventional and tokenized forms of the same security.
Third-order effects
- If major venues converge on governance, settlement and market-access rules, tokenized securities could develop as an extension of regulated exchange infrastructure rather than a separate crypto-market product.
- The durable constraint is likely to be rights and recordkeeping interoperability—not merely around-the-clock trading—because tokenized instruments must retain the obligations of the securities they represent.
The trend: Established exchanges are testing whether tokenization can add continuous trading and new settlement rails while retaining the governance controls of public markets.