Payward, the parent company of Kraken, has announced that eligible xStocks holders will soon be able to submit proxy voting preferences through a partnership with Broadridge. The initiative gives qualifying tokenized equity investors a mechanism to participate in corporate governance, addressing a gap that has persisted across tokenized securities more broadly—one in which holders of tokens representing shares frequently lack the formal shareholder rights attached to direct ownership of the underlying equities.

Payward Overhauls xStocks Voting Model

Under the previous arrangement, xStocks holders had no means of expressing voting preferences. The updated model allows eligible investors to submit proxy voting instructions for the shares backing their tokenized equities via Broadridge's infrastructure. Broadridge is a financial technology company that processes a substantial share of proxy votes for North American equities, and its involvement brings established institutional-grade voting rails to Payward's tokenized equity platform.

Mark Greenberg, Payward's Chief Commercial Officer, stated that the purpose of tokenization goes beyond improving capital markets efficiency. He emphasized that company ownership should inherently include opportunities to engage in corporate governance.

Broadridge delivers digital asset infrastructure spanning proxy voting, custody, wallets, and post-trade services. Through the partnership, these capabilities are now integrated into Payward's tokenized equity offering for eligible participants.

Eligible Markets Continue to Expand

xStocks, issued by Backed, remain restricted to eligible investors outside the United States. The products are also currently unavailable in the United Kingdom and to all U.S. persons. The geographic restrictions reflect the complex securities-law landscape surrounding tokenized equities, which can implicate differing regulatory regimes depending on jurisdiction and investor classification.

Despite these restrictions, Payward recently partnered with fintech infrastructure provider GTN to expand the xStocks lineup. The expansion includes Hong Kong-listed shares, with additional rollouts planned across Europe, South Korea, the United Kingdom, and other international markets.

Tokenized Equities Gain Traction

According to Payward, xStocks have processed more than $25 billion in total transaction volume since launching last year. The governance update arrives as the platform continues its international expansion.

Broader interest in tokenized equities and real-world-asset tokenization continues to build across financial markets. Blockchain firms and traditional financial institutions, including JPMorgan and Goldman Sachs, have explored migrating securities onto blockchain networks. BlackRock launched its BUIDL tokenized fund on Ethereum in 2024, signaling growing institutional engagement with on-chain representations of traditional assets.

The Broadridge collaboration brings shareholder participation directly into Payward's tokenized equity framework. Eligible xStocks holders can now submit proxy voting preferences while maintaining exposure to the shares underlying their digital tokens.