Nasdaq and NYSE Are Putting the $126T Stock Market on Blockchain

For years, similar to several other sectors, Wall Street also dismissed crypto as a speculative sideshow. Now, some of the biggest players in the space are leaning on the same technology to reshape how stocks move. Nasdaq has partnered with Payward, the parent company of cryptocurrency exchange Kraken. The goal of this deal is to distribute tokenized stocks and blockchain products across the globe.

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Nasdaq and NYSE Are Building on the Same Rails They Once Tried to Fight

This means that they intend to create blockchain-based versions of publicly listed shares that can be traded digitally. Several reports suggest that the latest initiative could eventually lead to the launch of tokenized equities in the coming years.

At the same time, Intercontinental Exchange, the firm that owns the New York Stock Exchange (NYSE), has invested in crypto exchange OKX at a reported $25 billion valuation. The move is linked to plans around tokenized equities and crypto futures. This further puts NYSE blockchain trading into focus.

These developments show something bigger than experimentation. The global equity market is estimated to be worth around $126 trillion. Yet much of the model behind stock trading still runs on systems built decades ago. Even today, most equity trades follow a settlement cycle that can take up to two business days to finalize. This is one of the reasons why exchanges are exploring blockchain as a faster alternative.

When stocks are represented digitally on blockchain networks, trades can settle almost instantly. Markets can run continuously instead of closing at the end of the day. Access can expand beyond the geographic and institutional boundaries that currently shape equity markets. This possibility could drive a new wave of Wall Street tokenization initiatives.

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Wall Street Tokenization: What Changes When Stocks Go On-Chain

Nasdaq’s collaboration with Kraken is expected to focus on issuing and distributing Nasdaq tokenized stocks. This could allow investors around the world to gain exposure to US equities through blockchain infrastructure.

Crypto exchanges see a whole different opportunity. Platforms that once specialized in digital assets are positioning themselves to handle traditional markets as well. Through this partnership, Kraken could eventually allow users to access Nasdaq stocks in tokenized form. If that happens, crypto exchanges would start acting as gateways to equities, not just crypto trading platforms. The community members were also optimistic about this development.

For a financial system that once treated crypto as an outsider, the reversal comes as a milestone for the community. The technology that challenged Wall Street may soon be powering it.

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