Nasdaq Equity Tokens vs Kraken xStocks vs Real Shares: What Do You Actually Own?

Nasdaq and Payward, the parent company of Kraken, are collaborating to launch Nasdaq Equity Tokens (NETs) by the second quarter of 2027. This initiative follows a $100 million investment by Nasdaq Ventures into Payward announced on September 10. The project aims to distinguish itself from existing products like Kraken’s xStocks by ensuring that a transfer of a NET represents a direct transfer of the underlying security itself, rather than a derivative representation. While xStocks provide economic exposure to equities like Apple through a custodial structure, they do not grant the holder direct legal status as a shareholder. In contrast, Nasdaq’s proposed model seeks to integrate blockchain records directly with a public company’s official share registry to preserve legal and regulatory status. This development highlights a growing convergence between traditional Wall Street infrastructure and blockchain technology, emphasizing the importance of legal rights in asset tokenization. By focusing on programmable corporate actions and direct registry integration, Nasdaq intends to maintain issuer control while enabling 24/7 market operations. The partnership also includes Payward adopting Nasdaq’s market-surveillance technology to enhance integrity across various digital asset venues.