Nasdaq to invest $100 million in Kraken parent to deepen tokenisation push

Nasdaq said on Thursday its venture arm agreed to invest $100 million in Payward, parent company of cryptocurrency exchange Kraken, deepening a partnership aimed at developing infrastructure for trading tokenised equities.

Established exchange operators are developing tokenised securities and related ‌infrastructure ⁠to capture ⁠growing investor interest in blockchain-based assets and compete with crypto-native ​platforms that are expanding into stocks and derivatives, including perpetual ​futures.

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Nasdaq said the companies aim to build infrastructure that allows tokenised assets ​to trade and settle outside conventional ⁠market hours ‌while maintaining regulatory compliance and market ​safeguards.

​The companies expect to launch Nasdaq Equity ⁠Tokens (NETs) in the second quarter of 2027 ​with Payward's xStocks platform.

Nasdaq said its ​tokens are intended to preserve the fundamental principles and benefits of regulated market infrastructure that ensures investor transparency, market integrity and liquidity.

"The next phase of the collaboration is planned to advance Nasdaq Equity ‌Tokens onto rails that do not close, with shareholder rights intact," said Arjun Sethi, ​Co-CEO of ​Payward.

The ⁠investment builds on a partnership announced in March where Nasdaq said it will collaborate with Payward to develop tokenization infrastructure.

​Just after the collaboration announcement, the exchange operator also received approval from the U.S. Securities and Exchange Commission to allow certain stocks to be traded and settled in tokenised form.