Nasdaq’s 2027 Token Plan Tests Kevin O’Leary’s Crypto Thesis
Kevin O’Leary says crypto’s next watershed will come when a major stock exchange adopts blockchain infrastructure. Nasdaq now has a 2027 plan that could test that claim.
Why this matters
Nasdaq is developing tokenized equities that could trade and settle through always-on infrastructure. That may validate blockchain technology without producing the single winning network O’Leary expects investors to find.
Nasdaq gives O’Leary’s prediction a practical test
O’Leary told The Block in an interview published September 18 that he was buying new crypto positions ahead of the next market cycle. The more important part of his argument concerned what he is waiting to see from traditional finance.
He described the first major stock exchange to adopt a blockchain as a “watershed moment.” Banks, brokers and other financial companies would then have a reason to build around infrastructure that had already met the exchange’s operational and regulatory requirements.
There is still no agreement on the winning network
O’Leary said executives across different industries were considering different blockchains rather than converging on one. His thesis therefore has two separate parts:
- Exchange adoption could validate blockchain infrastructure.
- One network could become the preferred institutional standard.
Nasdaq had already announced a project capable of testing the first part. On September 10—eight days before O’Leary’s interview was published—the exchange operator expanded its relationship with Payward, Kraken’s parent company, to develop Nasdaq Equity Tokens, or NETs.
What Nasdaq has actually announced
Under the agreement announced by Nasdaq, Nasdaq Ventures plans to invest $100 million in Payward. The companies expect NETs to launch in the second quarter of 2027, although that remains a target rather than a guaranteed deployment date.
The framework is intended to connect Nasdaq Equity Tokens with Payward’s xStocks ecosystem and support their distribution, trading and post-trade processing. Payward will also use Nasdaq’s market-surveillance technology across its crypto, equity, tokenized-equity, futures and options venues.
This is not a complete exchange migration
Nasdaq has not announced that its primary order book, matching engine or listed securities market will move onto a public blockchain. NETs concern the representation and movement of equities rather than the replacement of the entire exchange.
A stock can be represented by a token while price discovery, order matching, custody and regulatory reporting continue to depend on familiar market operators. Nasdaq’s project is therefore institutional blockchain adoption, but not yet the clean selection of one network imagined in O’Leary’s thesis.
The economic argument begins after the trade
Investors are unlikely to care whether their shares use tokens if the experience remains the same. The potential advantage sits behind the screen, in the process used to complete a trade after a buyer and seller have agreed on a price.
Why settlement still requires collateral
US equity trades are combined through netting, which offsets purchases and sales before settlement. This sharply reduces the amount of cash and securities that must change hands, but brokers still provide collateral against the risk that remains while settlement is pending.
Sethi’s argument is that onchain settlement could shorten the remaining wait and release more capital. These numbers appeared in Nasdaq’s announcement as Payward’s explanation of the opportunity. They are not independently verified results from a functioning NETs market.
The real comparison will be operational. A tokenized system would need to settle assets more efficiently without losing the benefits of netting, market surveillance, investor protection and error handling. Faster movement alone would not be enough if it created higher liquidity or counterparty costs elsewhere.
Tokenized shares are not synthetic trackers
Nasdaq says its framework is being developed around an issuer-focused model that preserves the rights and protections attached to traditional equities.
Tokenized share
- Represents ownership of the security
- Preserves dividend rights
- Preserves shareholder voting rights
- Must support corporate actions
Synthetic tracker
- Tracks the share’s market price
- May not represent direct ownership
- May not provide voting rights
- Depends on the product’s issuer
That difference determines whether tokenized equities can become more than speculative products. Supporting genuine ownership requires systems for dividends, shareholder records, voting, disclosures and other corporate actions.
Investors already have fast access to US stocks through traditional brokers. NETs will need to add a practical benefit—such as longer trading availability, easier movement between platforms or more efficient settlement—without weakening the legal protections investors already receive.
The SEC has opened a route, not approved NETs
The regulatory environment changed on September 17, when the SEC introduced temporary and conditional relief for certain Tokenized Securities Venues. The framework permits qualifying permissioned platforms to trade tokenized US-listed stocks while the agency considers permanent rules.
The SEC conditions include:
- Permissioned access rather than unrestricted trading
- Compliance with US sanctions requirements
- The same rights as the traditional security
- No loss of dividends or voting rights
- An issuer’s right to prevent participation
The SEC action does not approve Nasdaq Equity Tokens, Payward or the proposed 2027 launch. It does, however, show how regulators are beginning to distinguish tokenized ownership from products that merely imitate a stock’s price.
Agencies are moving while Congress remains stalled
SEC Chair Paul Atkins connected the temporary measure to the Senate’s failure to advance the CLARITY Act. O’Leary similarly said he did not expect the legislation to pass before the midterm elections, although he believed lawmakers would eventually return to crypto regulation.
Other agencies are also working through their existing authority. The CFTC has sent a separate crypto-market proposal to the White House following the legislative setback.
These measures create more room for controlled experiments, but they do not provide the certainty of permanent legislation. Nasdaq and Payward may still need to adjust their framework as regulators collect evidence and write longer-lasting rules.
Five results will matter after the 2027 launch
The announcement gives O’Leary’s thesis a named institution, a commercial partner and a target date. Whether it becomes a genuine turning point will depend on what happens after deployment.
Those results will also show whether the project creates demand for a particular cryptocurrency. Nasdaq and Payward could use blockchain-based infrastructure without generating substantial demand for a freely traded token. The commercial value may instead remain with the exchange, infrastructure providers, custodians and compliance services.
Nasdaq may validate blockchain without choosing a winner
If NETs attracts issuers and meaningful trading activity, the project would support O’Leary’s broader belief that stock-market adoption can bring blockchain into mainstream finance. It would not necessarily confirm the search for one network that captures most of the value.
Nasdaq’s plan points toward a quieter outcome. Blockchain may enter the stock market as one part of the machinery, operating behind familiar shares, shareholder rights and regulated venues. In that version of adoption, the technology succeeds precisely because investors no longer need to think about which chain is underneath it.
This article is provided for informational purposes only and does not constitute financial or investment advice. Project timelines, regulatory conditions and market infrastructure plans may change.
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
