NEW: South Korea's FSC said it will review lifting ban on crypto market makers to improve
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Nasdaq to Launch Tokenized Stocks with Shareholder Rights by 2027
Nasdaq has announced plans to introduce tokenized stocks, known as Nasdaq Equity Tokens (NETs), by the second quarter of 2027. This initiative is backed by a significant $100 million investment in Payward, the parent company of the cryptocurrency exchange Kraken, which is valued at $21 billion. The NETs will provide shareholders with the same voting rights and legal protections as traditional shares, marking a significant advancement in the integration of blockchain technology into equity markets.
The NETs will function as blockchain-based representations of stocks listed on Nasdaq, enabling 24/7 trading and on-chain settlements. This approach contrasts with existing tokenized stock products, which are often synthetic and do not confer direct ownership or voting rights. Nasdaq's model ensures that public companies retain control over their ownership records and corporate governance, allowing investors to hold genuine equity with legal rights attached.
The partnership with Payward is rooted in a collaboration announced in March 2026, aimed at distributing tokenized stocks internationally. Nasdaq's recent investment strengthens this relationship, transitioning it from a commercial partnership to a strategic alliance focused on developing the necessary technology for its tokenized equity offerings. Nasdaq's President Tal Cohen and Payward Co-CEO Arjun Sethi have both emphasized the importance of creating a transparent market environment where the token and the underlying security are legally identical.
If successful, the launch of NETs could revolutionize trading practices by reducing settlement times from the current T+1 standard to near-instant finality on-chain. This would also allow for automated processes related to dividend distributions and corporate actions through smart contracts, significantly reducing the administrative burden currently faced by custodians and transfer agents.
Source: KLEA News