Nasdaq to Launch Tokenized Stocks with Full Shareholder Rights by 2027

Nasdaq is advancing its plans to integrate blockchain technology into its trading operations by announcing a significant investment of $100 million in Payward, the parent company of Kraken. This investment aims to facilitate the launch of Nasdaq Equity Tokens (NETs) in the second quarter of 2027, which will provide shareholders with the same voting rights and legal standing as traditional shares.

The NETs will act as blockchain-based representations of stocks listed on Nasdaq, enabling 24/7 trading and on-chain settlements. This approach contrasts sharply with existing tokenized stock products, which are often synthetic and do not confer direct ownership or voting rights to holders. Nasdaq's model ensures that if you hold a NET, you own the actual equity, complete with all associated rights.

Nasdaq President Tal Cohen and Payward Co-CEO Arjun Sethi have emphasized their commitment to creating a transparent and trustworthy market environment. The partnership between Nasdaq and Payward, which began in March 2026, is expected to deepen with this investment, moving from a commercial collaboration to a strategic alliance.

Moreover, Nasdaq's proposal to the SEC in September 2025 laid the regulatory groundwork for tokenized trading, indicating a proactive approach to compliance and market integration. If successful, the launch of NETs could revolutionize trading by reducing settlement times and allowing for automated processes such as dividend distribution and proxy voting through smart contracts.

However, the introduction of these tokenized stocks also raises questions about regulatory oversight and market classification. Nasdaq's surveillance capabilities, as part of its agreement with Payward, aim to monitor trading across various asset classes, including crypto and equities. Yet, the legal classification of these products remains a critical issue that could affect their market access and investor protections.

Recent Developments in Tokenized Stocks

• The active market cap for onchain equities has reached approximately $4 billion, marking a 314% increase year-to-date.
• Monthly DEX trading volume for tokenized stocks surged to $7.9 billion in August 2026, up from $237 million in January 2026.
• Tokenized equities now represent over 4% of overall DEX spot volume, up from 0.1% at the end of 2025.
• The 30-day DEX trading volume for tokenized equities recently hit $14.8 billion, while the 90-day volume is around $15.9 billion.
• DeFi total value locked for tokenized equity products climbed to $289 million, up from $21.6 million at the start of the year.
• bStocks dominates the market, accounting for approximately 90% of tokenized equity DEX volume with around 58,000 daily active traders.
• Tokenized stocks offer advantages such as fractional ownership, 24/7 trading access, and immediate settlement without a three-day waiting period.
• The concentration of trading volume on bStocks raises concerns about market fragility in case of technical failures or regulatory actions.