Nasdaq Invests $100 Million in Kraken Parent Payward to Advance Tokenized Trading
Nasdaq is investing $100 million in Kraken parent Payward at a $21 billion valuation to bridge traditional capital markets and blockchain infrastructure, paving the way for 24/7 tokenized stock trading.
Nasdaq is significantly expanding its footprint in the digital assets sector with a $100 million investment in Payward, the parent company of crypto exchange Kraken. The investment values the company at $21 billion and marks a deeper integration between traditional capital markets and blockchain infrastructure.
Building Next-Generation Trading Infrastructure
According to reports, the investment is executed through Nasdaq Ventures, extending a collaboration that began in March. The initiative aims to bridge regulated financial systems with blockchain markets, introducing the capability to convert traditional equities into digital assets for continuous trading.
While traditional stock exchanges operate within set trading hours, the cryptocurrency market runs 24/7. Through this partnership, Nasdaq is developing infrastructure to facilitate tokenized stock trading outside of standard hours, potentially allowing the buying and selling of American equities during nights, weekends, and holidays.
Enhanced Surveillance and Tokenized Equity Framework
Simultaneously, Payward is set to adopt Nasdaq's market surveillance technology across all its trading platforms, encompassing crypto, traditional stocks, derivatives, and tokenized equities. The goal is to combat market manipulation and bolster institutional investor confidence.
Another major innovation is the Nasdaq Equity Tokens (NETs) framework. Unlike some existing tokenized stock products that primarily offer price exposure, these new tokens are expected to grant holders full ownership and voting rights, mirroring traditional shares. Commercial rollout is slated for the second quarter of 2027, with the system integrating into Payward's xStocks network.
The boundary between traditional capital markets and the crypto world is becoming increasingly blurred, with digital asset technologies poised to reshape trading on Wall Street.
Strengthening Expansion and IPO Timeline
For Payward, the $100 million infusion provides substantial financial backing for its continued expansion. The company filed a confidential prospectus for a potential IPO in late 2025, and this investment may enable it to defer the public offering until at least the second half of 2027.
