Nasdaq to invest $100 million in Payward and add surveillance across crypto and equity markets
Nasdaq to invest $100 million in Payward and roll out surveillance
Nasdaq announced that its venture arm will invest $100 million in Payward, the company that owns the Kraken crypto exchange. The agreement also includes a plan for Payward to use Nasdaq’s surveillance technology across its trading venues.
The surveillance will cover crypto, traditional equities, tokenized equities, futures and options. The announcement does not say when the system will be live or whether it will include data from U.S. cash‑equity markets.
Key points
- Nasdaq’s venture arm to invest $100 million in Payward.
- Surveillance technology will be applied to five asset classes.
- Citadel Securities asked regulators to keep equity‑linked products under SEC oversight.
- Deployment date and data‑access details were not disclosed.
Official announcement
On September 10, Nasdaq said its venture arm had reached an agreement to invest $100 million in Payward. The same release said Payward would adopt Nasdaq surveillance for its portfolio of trading venues, covering crypto, equities, tokenized equities, futures and options.
Other commentary
Citadel Securities filed a comment letter on September 9 urging regulators to monitor equity‑linked derivatives together with the underlying cash‑equity market. Citadel’s position is a policy view, not a regulator decision.
The article also notes that product classification—whether a contract is a security, swap, or futures—determines the regulatory path, not the presence of surveillance.
Confirmed facts
- Nasdaq’s venture arm agreed to a $100 million investment in Payward.
- Payward will use Nasdaq surveillance across crypto, equities, tokenized equities, futures and options.
- Citadel submitted a comment letter to the SEC on September 9.
Open questions
- The exact date when Payward will start using Nasdaq’s surveillance system is not provided.
- It is unclear whether the surveillance will include real‑time data from U.S. cash‑equity markets.
Why it matters
Surveillance can help a venue demonstrate orderly market operation, but it does not decide how a product is classified under U.S. law. Classification determines which regulator (SEC or CFTC) oversees the product and what investor protections apply. The lack of clarity on data access may affect regulators’ ability to spot manipulation that spans crypto and traditional markets.
Next steps
The SEC is holding a roundtable on September 17 to discuss market‑wide issues such as surveillance, settlement and investor protection. Nasdaq expects its work with Payward on “Equity Tokens” to launch in the second quarter of 2027, but this timeline remains forward‑looking.
