Nasdaq Invests $100 Million in Kraken Parent to Expand Tokenized Stocks

Nasdaq Invests $100 Million in Payward

Nasdaq Ventures has invested $100 million in Payward, the parent company of the Kraken crypto exchange. A crypto exchange is a platform where users trade digital currencies. The investment is part of a strategic partnership to bring tokenized stocks—digital versions of traditional shares—to the Kraken platform.

The deal aims to allow users to buy and own Nasdaq-listed stocks in a digital format. These tokenized equities are intended to carry the same voting rights as regular shares traded on the traditional Nasdaq exchange.

Key Details of the Agreement

• Nasdaq Ventures provided $100 million in funding to Payward.
• The investment reportedly values Payward at $21 billion.
• Kraken will distribute tokenized Nasdaq-listed stocks to its users.
• The digital tokens will maintain standard shareholder voting rights.

Nasdaq’s Move Into Digital Infrastructure

Nasdaq stated that it views the investment in Kraken as a way to support the development of infrastructure for tokenized markets. Earlier this year, Nasdaq announced plans to give companies more control over their shares in tokenized form. The exchange has been working with Kraken to create a bridge between traditional regulated markets and onchain markets, which operate on blockchain technology.

Reports on Valuation and Funding

While the investment amount is confirmed, the $21 billion valuation was reported by Bloomberg based on information from people familiar with the matter. Previous reports from May indicated that Payward was seeking capital at a $20 billion valuation as it considered a potential initial public offering.

What is Confirmed

The $100 million investment by Nasdaq Ventures is confirmed. The collaboration to provide tokenized equities with voting rights on the Kraken platform is also a confirmed part of the funding agreement. Nasdaq and Kraken have officially acknowledged they are working together to bridge regulated and digital markets.

The Shift to Round-the-Clock Trading

This partnership is part of a larger trend where major exchange operators are adopting blockchain infrastructure. Blockchain is a digital ledger system that allows for secure, transparent transactions. By using this technology, exchanges can move toward markets that do not close at the end of the business day. Other operators, such as the New York Stock Exchange (NYSE), are also developing systems for 24/7 trading of tokenized assets.

Next Steps for Tokenized Equities

The next phase of the partnership involves moving Nasdaq Equity Tokens onto digital systems that operate 24/7. Arjun Sethi, co-CEO of Payward, said the plan is to advance these tokens onto trading rails that remain open at all times while keeping shareholder rights fully intact.

Sources

• CoinDesk

Read also: Kraken Launches DeFi Yield Vaults for Tokenized Stocks and ETFs