Payward, the parent company of Kraken, plans to let eligible xStocks holders submit proxy voting preferences through a partnership with financial technology provider Broadridge, extending a corporate-governance feature that tokenized equity products have largely lacked.
The change applies to xStocks, tokens issued by Backed that track shares in publicly listed companies. Under the previous arrangement, holders of the tokens did not have a way to participate in votes connected to the underlying shares. Payward said Wednesday that the Broadridge integration will create a channel for eligible users to express voting preferences when companies covered by xStocks hold shareholder meetings.
The arrangement narrows one of the practical gaps between tokenized shares and conventional brokerage-held securities. Tokenized equities can offer around-the-clock blockchain transfers and self-custody options, but corporate actions such as proxy voting, dividends, stock splits and takeovers require links to the traditional financial infrastructure where the underlying shares are held.
Payward’s announcement describes the new service as a way for eligible xStocks users to submit preferences rather than as a transfer of direct legal shareholder status to every token holder. The distinction reflects the structure of tokenized equity products: the issuer or custody chain generally remains the registered holder of the underlying securities, while the token represents an economic claim or entitlement tied to those shares.
Broadridge brings proxy-voting infrastructure
Broadridge is a major provider of investor communications and proxy-voting systems for public companies and financial institutions. Its digital asset infrastructure also includes post-trade services, wallets and custody tools, according to Payward.
Adding Broadridge’s systems would connect xStocks to the established process through which shareholders receive meeting materials and send voting instructions on issues such as director elections, executive-pay proposals, mergers and shareholder resolutions.
Payward did not provide a rollout date, a list of markets where voting preferences will first be available, or the full eligibility criteria in its Wednesday release. Access will likely depend on the token holder’s jurisdiction, the underlying company’s shareholder meeting procedures and the terms governing the relevant xStocks token.
That jurisdictional screening is central to the product’s existing distribution model. xStocks are available only to eligible buyers outside the United States, while buyers in the United Kingdom are also excluded. The tokens are unavailable to U.S. persons.
Tokenized equities move beyond trading access
The proxy-voting initiative arrives as tokenized securities providers try to make blockchain-based products function more like the instruments they represent, rather than offering only price exposure. Corporate governance rights have been among the more difficult features to adapt because voting requires reliable identification of beneficial holders, secure delivery of company documents and a clear record of instructions.
A token can move quickly between blockchain wallets, whereas public-company voting systems are built around formal record dates and intermediaries. A record date determines which holders are entitled to vote at a particular meeting. Any tokenized model must therefore reconcile onchain ownership with the records used by issuers, custodians and proxy administrators.
Broadridge’s role could help address that operational problem. The company already operates systems used for distributing proxy materials and collecting instructions in traditional markets, giving Payward a route to connect token holders with existing corporate-action workflows rather than constructing a separate voting network.
The arrangement also places greater emphasis on how tokenized stock products describe holder rights. A token that tracks a listed share can provide economic exposure without necessarily providing every legal right attached to direct ownership. Product terms, custody arrangements and local securities rules determine whether and how a token holder can participate in dividends, voting and other corporate events.
Expansion follows push into Hong Kong stocks
Payward has been widening the range of markets covered by xStocks. Last month, the company said it had partnered with fintech infrastructure provider GTN to expand the product to stocks trading in Hong Kong.
The company said it intends to add access to equities from the United Kingdom, Europe, South Korea and other international markets later. Those plans would bring xStocks into a more complex patchwork of market rules, settlement systems and shareholder-rights practices.
The governance feature could become more relevant as that catalogue grows. A product covering a small selection of heavily traded U.S. shares faces one set of corporate-action procedures; a platform spanning Asian and European markets must handle different meeting schedules, disclosure formats, voting deadlines and restrictions on foreign ownership.
Payward said earlier this year that xStocks had exceeded $25 billion in total transaction volume since the product launched in 2025. That figure measures cumulative activity rather than the value of tokens outstanding, and does not establish how many users hold positions through shareholder record dates.
Traditional finance also tests onchain securities
Tokenization efforts are expanding beyond crypto-native platforms. Major banks, including JPMorgan and Goldman Sachs, have explored using blockchain systems for securities issuance, settlement or recordkeeping, while regulators in several jurisdictions have been examining how existing securities rules apply to distributed-ledger instruments.
The appeal is straightforward: onchain systems could reduce some reconciliation work between market participants, allow programmable settlement and make certain assets easier to transfer across digital platforms. Securities markets also carry protections and governance obligations that cannot be removed simply by representing an asset as a token.
Payward’s move with Broadridge addresses that constraint directly. For eligible xStocks users, the new process would offer a means to communicate preferences on corporate matters tied to the companies whose shares back their tokens. It does not eliminate the legal and operational differences between holding a token and appearing as a registered shareholder on a company’s books.
As tokenized equities spread to more markets, the providers that can handle corporate actions alongside trading and custody will have a clearer path to competing with conventional investment platforms.
Explore how on-chain stocks work in practice in our guide to tokenized equities and their growing role in markets.
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