Introduction#
NASDAQ Inc. has announced an exciting initiative to launch an equity token design that allows public companies to maintain control over their shares in a digital format. This move aims to modernize various corporate processes, including shareholder engagement and proxy voting, through the use of tokenization technology.
What is Tokenization?#
Tokenization refers to the process of converting rights to an asset into a digital token on a blockchain. In this case, NASDAQ's proposal, filed with the U.S. Securities and Exchange Commission in September 2025, will allow equity securities to be traded on NASDAQ markets and settled in token form. This means that shares can be represented digitally, making transactions more efficient.
Partnership with Payward#
To develop this new equity transformation gateway, NASDAQ has partnered with Payward, the parent company of the cryptocurrency platform Kraken. This collaboration aims to facilitate the movement of assets between regulated markets and blockchain networks while ensuring that the rights of issuers are preserved and regulatory compliance is maintained.
Future Outlook#
NASDAQ's approach intends to integrate blockchain records directly into the official share registries of issuers. This will create a seamless connection between digital records on the blockchain and traditional identity verification methods. Token transfers will represent actual transfers of underlying securities, ensuring that all legal and regulatory standards are met. The company expects this program to be operational by the first half of 2027, with additional services based on distributed ledger technology becoming available to issuers as the framework develops.