Nasdaq is teaming up with Kraken to deliver tokenized shares

Kraken will work with Nasdaq to deliver tokenized shares.

Payward, the infrastructure platform behind the popular US cryptocurrency exchange Kraken, has announced that it will partner with Nasdaq. The initiative aims to develop tokenized shares and further bridge traditional capital markets with blockchain-based financial systems.

The move reflects growing efforts in the traditional financial industry to modernize its infrastructure. As Crypto potato It was reported earlier last week that it was indeed the crypto industry that drove global markets after the US attack on Iran.

xStockz, Kraken’s tokenized equity product, will provide a permissionless infrastructure layer designed to support Nasdaq’s issuer-sponsored equity tokens.

Tokenized resources, as well as commodities such as gold, silver and, more recently, crude oil, have been the talk of the town lately, as crypto exchanges allow 24/7 trading unlike many traditional venues.

According to official information, the initiative is based on the growing adoption of xStocks, which has already exceeded 25 billion dollars in total transaction volume. Basically, Kraken acts as a distribution partner. Arjun Sethi, Co-CEO of Payward and Kraken commented on this, saying:

Tokenization improves the market infrastructure at the asset layer, allowing stocks to exist as programmable financial instruments that can operate in both regulated capital markets and open blockchain networks. Today, the majority of stocks are located inside brokerage systems, whose profit is limited mainly by the directional influence and in some cases by the broker’s special margin adjustment.

This move points to the increasing institutionalization of the industry as well as a significant shift to traditional stocks and commodities. Furthermore, Kraken seems to be pedal to the metal in the latest shift, becoming the first company to receive a Fed Master account last week.