Major stock exchange operators are racing to incorporate cryptocurrency infrastructure into the traditional financial system, betting on the convergence of these markets into a round-the-clock trading ecosystem. Nasdaq Inc. is amplifying this effort through a partnership with digital asset technology firm Talos, aiming to connect crypto trading and risk management tools with the same platforms used by large Wall Street banks and brokers to manage collateral and monitor activities in equities and bonds.
This move signals that stock trading via tokenization is drawing nearer, with the Real-World Assets (RWA) trend expanding from government bonds, money market funds, and private credit into more complex asset classes like equities—provided it follows regulated, interchangeable pathways compatible with existing market structures. Nasdaq's recent emphasis on accelerating its "stock tokenization design" underscores its role as a capital markets gatekeeper working to embed crypto and tokenized assets into mainstream financial infrastructure.
On Monday, the two companies announced that Talos’s major clients—ranging from hedge funds to large retail brokers—will gain access to Nasdaq’s Calypso platform, which traditional financial firms use for risk, margin, and collateral management. This collaboration is part of a broader initiative by Nasdaq to integrate crypto infrastructure into the core of the financial system.
Nasdaq’s rival, the New York Stock Exchange, is also developing its own blockchain-based trading venue to enable 24/7 trading of tokenized stocks and ETF assets. Roland Chai, President of European Market Services and Head of Digital Assets at Nasdaq, stated in an interview, “We are seeing widespread adoption of digital assets including cryptocurrencies, stablecoins, and broader RWA. We are taking deliberate steps to ensure we can fully offer and integrate relevant crypto tools and risk management.”
Traditional securities markets, which trade Monday through Friday, and always-on crypto markets are gradually converging. Exchange operators are seeking synergies by combining old and new technologies to bring different asset classes closer. Anton Katz, CEO and Co-Founder of Talos, noted, “We help institutions extend their existing trading, risk, collateral, and compliance workflows into digital assets, rather than treating crypto as an isolated financial market.” He described the Nasdaq partnership as “tangible proof that these two worlds are truly beginning to merge.”
Tokenization—creating digital representations of real-world assets on blockchain—is seen as a solution for enabling 24/7 trading and collateral management, aligning more closely with crypto market operations. Proponents argue it can enhance liquidity, reduce costs, and improve efficiency across multiple asset classes, though adoption remains limited.
Earlier this month, Nasdaq announced it is developing a tokenization model that would give public companies greater control over tokenized versions of their shares. It is collaborating with Payward, the parent company of crypto exchange Kraken, to create a gateway for seamless movement of tokenized stocks between regulated public markets and on-chain financial ecosystems. The NYSE is also building a blockchain-powered platform for round-the-clock trading of tokenized equities and ETFs.
In September, Nasdaq filed with the U.S. Securities and Exchange Commission (SEC) to amend rules allowing tokenized stock trading in regulated venues like its own. The SEC approved the proposal this month under Chairman Paul Atkins, who has broadly supported tokenization and financial market liberalization.
Talos, a major provider of institutional digital asset infrastructure, raised an additional $45 million in a Series B extension in January, bringing total funding to $150 million and valuing the company at $1.5 billion. Key investors include Robinhood Markets, BNY Mellon, and Fidelity Investments.
Nasdaq’s recent initiatives move “stock tokenization” from concept to regulated market infrastructure. Rather than creating an off-chain alternative, Nasdaq is enabling stocks to trade in tokenized form on its platform and settle via the Depository Trust & Clearing Corporation (DTCC) with tokenized settlement. Crucially, Nasdaq’s design ensures tokenized shares retain the same legal rights, CUSIP identifiers, order books, and shareholder privileges as traditional shares—avoiding a parallel “shadow stock market.”
This indicates that RWA is expanding from simpler yield-generating assets like government bonds and private credit into more complex equities. However, tokenizing stocks involves greater challenges than tokenizing bonds. While bond tokenization mainly improves holding and settlement efficiency, stock tokenization must address voting rights, dividends, stock splits, corporate actions, shareholder registries, and governance—all within existing corporate and securities law frameworks.
Nasdaq’s emphasis on “placing issuers at the center” addresses these complexities. An SEC staff statement in January distinguished between issuer-led and third-party-led tokenized securities, signaling regulatory engagement with these structural issues.
From a theoretical standpoint, the value of stock tokenization lies not merely in digitizing shares but in restructuring trading hours, settlement speed, programmability, and global distribution capabilities. Nasdaq’s collaboration with Payward aims to create a gateway for tokenized stocks to move between regulated and on-chain markets, while the NYSE is developing a platform supporting 24/7 trading, instant settlement, and stablecoin-based payments.
In effect, traditional exchanges no longer view tokenization as a crypto experiment but as the next-generation “pipeline” for securities markets—enabling extended trading hours, reduced settlement friction, fewer intermediaries, and enhanced global liquidity.
The latest partnership with Talos, announced on March 23, focuses not on redesigning stocks but on integrating crypto assets into institutional back-office systems. Talos clients will use Nasdaq’s Calypso platform to manage digital asset risk, margin, and collateral with the same tools used for traditional assets. Nasdaq executives emphasize that digital assets are being widely adopted, and their goal is to provide tools and risk management while aligning traditional markets with 24/7 crypto markets.
If Nasdaq’s earlier “stock tokenization design” addressed asset and rights layers, the latest move integrates post-trade and risk-control infrastructure. Though distinct, these efforts complement each other, forming a comprehensive roadmap for Nasdaq’s crypto and RWA tokenization strategy.
According to projections by Ripple and Boston Consulting Group, the tokenized real-world asset market could exceed $18 trillion by 2033, with a compound annual growth rate of 53% starting in 2025. Tokenization, centered on RWA, involves mapping traditional financial or physical assets—such as bonds, loans, fund shares, real estate, and carbon credits—into programmable, transferable digital tokens on blockchain.
Most studies describe RWA as representing ownership of tangible or off-chain assets via blockchain-based tokens issued through smart contracts. The World Economic Forum notes that tokenization offers a shared ledger, real-time settlement, and programmability, significantly reducing settlement risk and improving transaction efficiency.
For major banks, the RWA tokenization wave—following stablecoin adoption—offers new revenue streams and opportunities to harness blockchain efficiencies within regulatory frameworks. RWA is poised to become one of the most significant themes in on-chain traditional finance, though its growth into a transformative wave akin to AI depends on regulatory clarity, issuer participation, and interoperability with legacy systems.
Current momentum is strong: RWA.xyz data shows on-chain RWA value has reached approximately $26.5 billion, and U.S. banking regulators recently clarified that banks holding or trading tokenized securities face no additional capital penalties, emphasizing a technology-neutral stance.
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