New platform for trading tokenized equities
Nasdaq, one of the world's largest stock exchanges, and cryptocurrency exchange Kraken have announced the launch of a joint platform for trading tokenized equities. This development is aimed at providing investors with the ability to trade shares of public companies using blockchain technology.
The main idea is to give investors the opportunity to convert traditional financial instruments, such as stocks, into a digital format on the blockchain. At the same time, all the rights of issuers and regulatory requirements will be observed. This will ensure higher liquidity and 24/7 availability of trading in tokenized shares.
How will the platform work?
- Issuing companies will be able to issue tokenized versions of their shares on the Kraken blockchain.
- Investors will be able to trade these tokenized shares both on the traditional Nasdaq exchange and on the Kraken blockchain platform.
- Transfers of shares between the regulated market and the blockchain will be carried out while preserving the rights of issuers and complying with regulatory requirements.
This project demonstrates the desire of large traditional financial institutions to adapt to the development of technology and integrate it into their activities. This will increase the availability, liquidity and transparency of trading in traditional assets.