Nasdaq said it will work with crypto exchange Kraken to develop a system for issuing and trading tokenized versions of stocks and other exchange-traded products, according to a Wall Street Journal report.

Under the plan, tokenized shares would give investors the same corporate governance rights as ordinary stockholders, including voting in proxy ballots and receiving dividends. Nasdaq said the initiative will focus heavily on making corporate actions, such as dividend payments and proxy voting, more efficient by automating parts of the process through blockchain technology. The platform is expected to launch in early 2027.

Kraken will act as a distribution partner for the project. Through the arrangement, one-to-one tokenized versions of public company shares would be made available to Kraken’s customers outside the United States, particularly in Europe and other international markets.

The effort builds on a proposal Nasdaq submitted to the U.S. Securities and Exchange Commission in September seeking approval to allow tokenized versions of its listed stocks and exchange-traded products to trade alongside traditional shares on the exchange.

In that proposal, both the tokenized and conventional versions would be settled through the Depository Trust to ensure they remain interchangeable.

Last week exchange operator ICE made a strategic investment in OKX, valuing the exchange at $25 billion as it signed a deal to offer new tokenized stocks and crypto futures products.

Separately, Nasdaq also announced a partnership with Boerse Stuttgart Group’s tokenized settlement platform Seturion to connect its European trading venues to infrastructure designed to support trading and settlement of tokenized securities.

UPDATE: (March 9, 11:41 UTC) Adds the final paragraph on Nasdaq's partnership with the Boerese Stuttgart Group.