BREAKING: NASDAQ Invests in Kraken’s Parent Payward amid Tokenization Push
Highlights
- Nasdaq's venture capital division is investing $100 million in crypto exchange Kraken's parent Payward.
- This advances work on the Nasdaq Equity Token (NET) framework and a new market surveillance agreement.
- Kraken and its parent partnered with many firms such London Stock Exchange amid demand for tokenized equities.
Nasdaq is investing in crypto exchange Kraken’s parent company Payward. The investment further deepens strategic partnership to accelerate the development of financial infrastructure supporting tokenized equities trading, clearing and settlement.
Nasdaq Expands Partnership with Kraken’s Parent Company Payward
Nasdaq’s venture capital division is investing $100 million in Payward, the parent company of crypto exchange Kraken. This strategic investment values Payward at $21 billion, according to an official announcement on September 10.
Payward and Nasdaq advance work on the Nasdaq Equity Token (NET) framework and a new market surveillance agreement. The infrastructure for tokenized assets will support transfer between permissioned institutional systems and decentralized networks.
“Expanding our relationship with Payward reflects our conviction that the company can play an important role in building the infrastructure that supports this evolution,” said Tal Cohen, president at Nasdaq.
The companies expect to launch NETs in the second quarter of 2027. The companies earlier partnered to design a framework to connect with Payward’s xStocks ecosystem.
xStocks tokens are designed as 1:1-backed representations of underlying shares, preserving issuer rights, governance features, and regulatory protections. Payward Co-CEO Arjun Sethi revealed that xStocks volume has grown rapidly since launch. next phase of the collaboration will advance the global distribution, trading and post-trade capabilities needed to support the broader adoption of tokenized equities.
Massive Tokenization Adoption by TradFi
Kraken is advancing the tokenization push set forward by regulatory priorities by the SEC and CFTC. As CoinGape reported earlier, London Stock Exchange partnered with Payward to tokenize the 100 largest London-listed companies as xStocks.
Moreover, Germany’s Deutsche Borse acquired 1.5% fully diluted stake with a $200 million investment in Kraken parent Payward. Tokenization partnerships with Nasdaq, LSE, and Deutsche Borse form a core part of the narrative Payward is building for investors.
Kraken has expanded access to US stock trading for eligible customers across the European Economic Area (EEA), building on its existing tokenized xStocks offering.
For investors seeking on-chain exposure to traditional equities, check the best exchanges for tokenized stocks that provide a secure bridge to hybrid digital assets.
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