U.S. Equities Enter “Always‑On” Trading Era Nasdaq Advances Stock Tokenization Framework

In recent years the U.S. equity market extended trading hours to cover 24 hours on business days, and it is now exploring a further expansion toward continuous “7x24” trading. Nasdaq announced on Monday a plan to introduce a tokenized‑stock framework intended to give issuers greater control over their tokenized shares. The initiative is slated to commence operations in the first half of 2027, at which point holders of tokenized shares will receive the same governance rights as investors in the underlying securities.

The most consequential change for U.S. markets from putting stocks on chain is the prospect of uninterrupted trading, akin to existing cryptocurrency markets such as Bitcoin and Ethereum. Beyond round‑the‑clock trading, tokenization could enable near‑instant settlement and may reduce intermediary costs. Nasdaq indicated that any issuer wishing to participate may join the program, including companies not listed on Nasdaq.

Nasdaq also disclosed a collaboration with Payward, the parent company of crypto exchange Kraken, to develop a conversion channel that would allow tokenized stocks to move between regulated venues and on‑chain markets. As background, Nasdaq submitted a stock tokenization proposal to the U.S. Securities And Exchange Commission in September 2025 that would permit investors to trade both traditional shares and blockchain‑based securities of high‑volume names such as Nvidia, as well as ETFs, under a common CUSIP identifier. That design would enable convertibility and settlement through the Depository Trust & Clearing Corporation. The proposal remains under SEC review.

Tal Cohen, President of Nasdaq, said the September 2025 submission focused on market‑level implementation to benefit investors, while the new proposal places greater emphasis on issuer requirements and integrates those needs into the tokenization model. He stressed that an issuer‑led tokenized‑stock structure is intended to empower listed companies and to facilitate global investor access to U.S. equity markets.

In January 2026 the New York Stock Exchange announced it was building a blockchain‑based trading platform to support continuous trading of tokenized stocks and ETFs. Some cryptocurrency exchanges have already offered tokenized versions of popular U.S. equities, but critics note that many of these products lack direct ties to the issuing companies, suffer from tracking errors and do not provide price‑discovery functions. Current tokenized offerings also typically do not confer dividend rights or shareholder voting, making them resemble derivatives rather than true equity instruments.