Payward and Nasdaq have collaborated to create an equities transformation gateway that links regulated markets with decentralised tokenised equity platforms.
This partnership aims to develop a platform that connects the tokenised equity market with blockchain networks, leveraging Payward’s xStocks framework. This framework is designed to enable seamless transfers of tokenised equities between traditional and decentralised environments in compliant jurisdictions.
Connecting traditional markets with DeFi
Per the press release, Payward will serve as the primary settlement layer for transactions under Nasdaq’s equity token design during an initial phase. Additionally, Payward Services will manage compliance procedures such as KYC and AML for users.
The gateway allows clients in eligible regions to transfer tokenised equities between regulated markets and the decentralised DeFi ecosystem, ensuring that issuer rights, regulatory requirements, and market prices are maintained throughout the process.
Overview of Nasdaq’s equity token design
Nasdaq’s new framework for tokenising equities retains issuer control over underlying asset rights while aligning with existing regulatory structures. The initiative is anticipated to become operational in the first half of 2027. Both parties believe that tokenisation can enhance global access and operational efficiency in financial infrastructure.
From a capital markets viewpoint, the gateway addresses the issue of collateral fragmentation by allowing tokenised equities to serve as flexible collateral across various trading strategies on different platforms. This innovation promises to streamline processes and improve liquidity management.
In areas where traditional access is limited, tokenisation could broaden market exposure opportunities. In more advanced markets, the focus will be on capital efficiency, enabling greater fluidity in the movement of equity collateral across trading, lending, and hedging strategies within a unified liquidity framework.
The gateway will be accessible in jurisdictions where xStocks are currently supported and Payward holds necessary regulatory approvals.
