Nasdaq has announced a partnership with Payward, the parent company of cryptocurrency exchange platform Kraken, to develop infrastructure for the tokenization of financial assets. The technology involves converting traditional assets (shares, bonds, funds or real estate) into digital tokens that can be traded on blockchains. The initiative aims to meet growing interest in tokenized shares and markets operating around the clock.

The exchange operator is notably trying to enable institutions to transfer securities from traditional market infrastructure to blockchain networks via the xStocks platform developed by Payward. Nasdaq had already sought authorization in September from the Securities and Exchange Commission to allow securities to be traded in digital or tokenized form.

The rise of tokenization is part of a broader shift toward institutional adoption of digital assets, bolstered by the passage of the GENIUS Act and several similar initiatives in the United States. Intercontinental Exchange, the owner of the New York Stock Exchange, is also looking to launch a 24-hour trading platform for tokenized securities. Nasdaq's first projects are expected to focus on corporate actions processing, shareholder voting and interactions between companies and investors.