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 press release.

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…