Payward Services, the parent company of crypto exchange Kraken, is enabling tokenized equities holders to submit proxy voting preferences for the first time through an integration with Broadridge Financial Solutions. The integration, announced through a press release, allows xStocks holders to express positions on corporate governance matters tied to shares underlying their tokens.
xStocks are tokenized representations of fractional equity stakes issued on Kraken's platform. The tokens have previously operated without any mechanism for holders to express voting preferences, leaving governance decisions entirely to Payward Services. The Broadridge integration creates a unified system for collecting and processing those preferences, though xStocks themselves remain structured products without direct voting entitlements.
Broadridge operates one of the world's largest proxy voting and governance platforms, processing voting instructions for institutional investors across major equity markets. The company works with custodians, brokers and asset managers to facilitate shareholder communications and voting logistics. Payward Services is now part of Broadridge's client base, expanding its work into the tokenized securities space.
Payward Services launched xStocks in 2023 as a way for U.S. Kraken users to hold fractional shares of major public companies directly on-chain. The platform has processed $25 billion in total transaction volume since inception. Kraken's FAQ clarifies that xStocks holders do not hold voting rights themselves; instead, Payward Services votes shares held in trust on behalf of token holders according to whatever preferences those holders submit.
The SEC has said tokenized securities must meet the same disclosure and trading requirements as traditional securities, but questions about voting mechanics and custody have remained open. Payward Services now has a pathway to collect xStocks holders' proxy preferences before each shareholder meeting and forward those preferences to Broadridge, which handles execution and reporting.
The announcement comes as tokenized securities have begun moving from proof-of-concept to live transaction volumes. A preference submission mechanism, even one that stops short of direct voting rights, narrows the governance gap between tokenized and traditional equities.
