Tokenization Is Bringing Traditional Markets On-Chain — and DeFi May Be Entering Its Next Growth Phase

Nasdaq has announced a $100 million investment in Payward, the parent company of Kraken, to accelerate the development of infrastructure for tokenized equities. This strategic move highlights the growing convergence between traditional financial institutions and decentralized finance, signaling a shift toward blockchain-based market infrastructure. As of September 2026, the value of tokenized real-world assets, excluding stablecoins, has surpassed $25 billion, with U.S. Treasuries and private credit leading the growth. The platform Lvvas emphasizes that the future of DeFi lies in the interoperability of these tokenized assets with smart contracts and decentralized applications. By moving beyond crypto-native assets, the industry is evolving to integrate traditional financial instruments into programmable, on-chain systems. This transition aims to replace multi-intermediary settlement processes with automated, blockchain-based execution. Ultimately, the success of this shift depends on evolving regulatory frameworks, custody solutions, and the ability to securely integrate traditional assets into decentralized ecosystems.