Key facts
- Nasdaq invested $100 million in Payward, the parent company of crypto exchange Kraken.
- The investment values Payward at $21 billion.
- Nasdaq and Payward aim to build infrastructure for trading tokenized assets outside conventional market hours.
- Nasdaq Equity Tokens are expected to launch in the second quarter of 2027.
- Nasdaq received SEC approval to allow certain stocks to be traded and settled in tokenized form.
Nasdaq's venture arm has invested $100 million in Payward, the parent company of cryptocurrency exchange Kraken, at a $21 billion valuation. This investment expands a partnership between the two companies and aims to develop infrastructure for trading tokenized equities.
The companies plan to build infrastructure that allows tokenized assets to trade and settle outside conventional market hours while maintaining regulatory compliance. Nasdaq Equity Tokens (NETs) are expected to launch on Payward's xStocks platform in the second quarter of 2027. Nasdaq stated that its tokens are intended to preserve the principles of regulated market infrastructure, ensuring investor transparency, market integrity, and liquidity.
This move follows similar initiatives by other established exchange operators. Intercontinental Exchange, owner of the New York Stock Exchange, invested in OKX in March at a $25 billion valuation. Deutsche Börse acquired a 1.5% stake in Payward in April for $200 million, implying a valuation of about $13.3 billion. Payward had previously raised $800 million at a $20 billion valuation in November.