Nasdaq pushes tokenisation tie-up with Kraken… reviewing blockchain issuance of stocks and ETPs

Nasdaq is reportedly working with cryptocurrency exchange Kraken to pursue the tokenised issuance of stocks and exchange-traded products (ETPs).

According to The Wall Street Journal (WSJ) on the 9th, Nasdaq is developing a structure with Kraken and related issuers to offer tokenised stocks and ETPs on the exchange.

The framework is expected to launch as early as the beginning of next year. The core aim is to streamline corporate-governance procedures using blockchain technology. Measures under review include implementing automated proxy voting and dividend payments, and granting token holders the same governance rights as holders of the underlying securities.

Under the partnership, Kraken will serve as a distribution partner, planning to offer tokenised assets to European and global clients that are linked 1:1 to shares of listed companies.

Nasdaq is also said to be awaiting final approval from the US Securities and Exchange Commission (SEC) to allow investors to trade tokenised shares of highly liquid names such as Nvidia and Tesla on its existing platform. The tokenised shares are expected to be designed to be interchangeable with conventional shares by using the same CUSIP numbers.

Meanwhile, since the passage last year in the US of a stablecoin-related bill, the “Genius Act”, traditional financial institutions have also been accelerating moves around the tokenised financial-asset market. Major players such as the New York Stock Exchange (NYSE), BlackRock and JPMorgan are also reportedly expanding related businesses.