Nasdaq is introducing an issuer-centric equity token design to modernize how public company shares are represented and traded. This initiative allows tokenized shares to maintain the same legal rights and settlement processes as traditional equities while leveraging blockchain for enhanced transparency and efficiency.

The design ensures that on-chain blockchain records link directly to the issuer’s official share registry, preserving full legal equivalence. It aligns with the SEC’s classification of tokenized equities under existing federal law and maintains robust market integrity, liquidity, and investor protections.

Nasdaq’s collaboration with Payward, the parent of Kraken, will develop an equities transformation gateway enabling seamless transfers between regulated venues and permissionless on-chain networks. This interoperability aims to support global trading, collateral efficiency, and capital mobility while safeguarding issuer rights and compliance.

By offering always-on trading capabilities and programmable corporate actions such as proxy voting, Nasdaq expects to expand investor access across time zones. The program will engage issuers, transfer agents, and regulators, with voluntary participation and future enhancements guided by regulatory review and market feedback.