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Payward, the infrastructure platform behind Kraken, says it has partnered with Nasdaq to build a new “equities transformation gateway” that connects regulated, permissioned tokenized equity markets with permissionless blockchain networks. The project aims to let eligible clients move tokenized equities between institutional market rails and DeFi-style ecosystems without breaking issuer rights or compliance requirements.
A bridge between Wall Street rails and DeFi rails
Payward says the gateway will combine Nasdaq’s regulated market infrastructure with Kraken’s xStocks framework, allowing tokenized equities to “swap” between a permissioned market environment and permissionless on-chain networks in eligible jurisdictions.
The idea is to make tokenized equities more usable than “just price exposure” by letting them move into broader on-chain finance workflows—while still staying anchored to regulated market structure on the permissioned side.
xStocks is the permissionless layer
Payward positions xStocks as the permissionless infrastructure piece of the design. It says xStocks has passed $25 billion in total transaction volume since launching less than a year ago, including more than $4 billion settled on-chain, and has 85,000+ unique holders across supported networks.
In plain terms: Nasdaq is building an issuer-sponsored tokenized equity approach, and Payward wants xStocks to be the “on-chain side” that can plug those assets into open networks where allowed.
Compliance and settlement details
Payward says Payward Services will handle KYC and AML onboarding for participants who access the gateway through Kraken, aiming to ensure users meet compliance requirements in relevant jurisdictions.
Payward also says it will serve as the primary settlement layer for Nasdaq’s equity token design transactions for an initial period in eligible jurisdictions where xStocks is available and where Payward has the required registrations, licenses, and approvals.
Nasdaq expects its equity token design and related DLT services to become operational starting in H1 2027, according to the announcement.
Access limits and where this can’t be offered
Payward notes that xStocks are not registered under the U.S. Securities Act and are not available in the United States or to U.S. persons, and also says they are not currently available in the United Kingdom or other jurisdictions where offering would be unlawful or require authorizations not obtained.
Why it matters for crypto
- Tokenized equities only become “real infrastructure” when they can move between regulated markets and on-chain applications without breaking compliance.
- If this gateway works, it could expand what tokenized stocks can do: collateral, lending, hedging, and cross-product capital efficiency—beyond simple spot exposure.
- Nasdaq’s involvement is a signal that tokenization is moving closer to issuer-led, regulated market design—not just crypto-native wrappers.
- KYC/AML and jurisdiction gating are being built into the architecture, which is likely required for institutional adoption.
What to watch next
- Any concrete technical details on how swaps between permissioned and permissionless environments will be executed (and what controls apply).
- Which jurisdictions are first to support the gateway, given xStocks availability and Payward licensing constraints.
- Nasdaq milestones toward its target start of operations in H1 2027.
- Whether additional issuers or market infrastructure providers adopt Nasdaq’s token design once the framework is live.