- Kraken’s parent company, Payward, has partnered with Broadridge to introduce proxy voting for eligible xStocks holders.
- The update gives qualifying investors a way to submit voting preferences on the underlying companies, bringing tokenized equities closer to traditional stock ownership.
- The move comes as interest in tokenized securities continues to grow among both crypto firms and major Wall Street institutions.
Payward, the parent company of cryptocurrency exchange Kraken, is expanding the functionality of its xStocks platform by introducing proxy voting capabilities for eligible tokenized equity holders.
The new feature, announced Wednesday through a partnership with financial technology provider Broadridge, marks a significant step toward giving tokenized stock investors a greater role in corporate governance.
Bringing Governance to Tokenized Stocks
Until now, holders of xStocks received economic exposure to underlying shares but did not have the ability to participate in shareholder voting.
Under the new arrangement, eligible investors will be able to submit proxy voting preferences through Broadridge’s infrastructure, allowing them to take part in certain corporate governance decisions tied to the underlying companies.
Payward Chief Commercial Officer Mark Greenberg said the long-term vision for tokenization extends beyond faster trading and programmable markets to providing investors with the full ownership experience, including a voice in how companies are managed.
What Are xStocks?
Issued by Backed, xStocks are tokenized representations of publicly traded equities available to eligible investors outside the United States.
The platform currently excludes investors in the United States, the United Kingdom, and U.S. persons.
Last month, Payward also announced a partnership with GTN to expand xStocks beyond U.S. equities by adding access to Hong Kong-listed shares, with future expansion planned across Europe, South Korea, the United Kingdom, and other international markets.
Tokenization Continues to Gain Momentum
The announcement comes as tokenized securities attract growing interest across both the cryptocurrency industry and traditional financial institutions.
Major firms including JPMorgan and Goldman Sachs have increasingly explored blockchain-based financial infrastructure, while crypto-native companies continue developing platforms that bring traditional assets onchain.
Adding governance rights represents another step toward narrowing the gap between tokenized assets and conventional stock ownership.
What It Means for Investors
Although voting rights remain subject to eligibility requirements, the integration with Broadridge strengthens the utility of tokenized equities by offering investors more than simple price exposure.
As tokenized markets continue to mature, features such as proxy voting could help make blockchain-based securities more attractive to institutional and retail investors seeking ownership rights comparable to those available in traditional financial markets.
