Nasdaq Kraken Tokenization Partnership
Nasdaq Invests $100 Million in Kraken Parent to Advance Tokenized Market Infrastructure
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Key Points
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Kraken is expected to offer tokenized Nasdaq-listed stocks with the same voting rights as conventional equities traded on Nasdaq, according to the reported funding agreement.
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The investment builds on a partnership announced in March, while Payward’s fundraising efforts were first reported in May at a targeted valuation of about $20 billion.
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Nasdaq’s Digital Liquidity Networks division is leading the collaboration; the unit is focused on developing always-on infrastructure to move capital, assets and liquidity more efficiently across global markets.
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Nasdaq President Tal Cohen said the partnership reflects Nasdaq’s belief that Payward can help build infrastructure for the next phase of market development while preserving “trust, transparency and integrity” in capital formation.
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The initiative is part of a wider exchange-industry push: the New York Stock Exchange is separately developing a venue for round-the-clock trading of tokenized stocks and exchange-traded funds.
Nasdaq Ventures will invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, valuing the company at $21 billion, according to Reuters. The deal deepens a partnership focused on tokenized stocks — digital versions of shares that trade on blockchain. Nasdaq plans to launch its equity-token framework in the second quarter of 2027, allowing Kraken users to buy and sell tokenized Nasdaq-listed stocks with full voting rights.
The partnership reflects major exchanges' push toward around-the-clock trading on blockchain networks. Crypto Times reported that the investment extends Nasdaq's venture arm's commitment to what it calls 'xStocks' — the infrastructure that will power these digital securities. The New York Stock Exchange is separately building its own 24/7 trading venue for tokenized stocks and ETFs.
How Tokenized Stocks Will Work on Kraken
Tokenized Nasdaq stocks on Kraken will function like traditional shares. Owners get the same voting rights as people who buy shares the old way. Coinfomania confirmed that Kraken will distribute these digital tokens directly to its users. The tokens live on blockchain, meaning trades could theoretically happen anytime — not just during market hours.
Nasdaq's Three-Year Pivot to Digital Markets
Nasdaq announced this partnership in March 2024, but the funding push started earlier. Reuters reported that Payward had been seeking capital at roughly $20 billion since May. This latest $100 million round closes that gap at a $21 billion valuation. Nasdaq President Tal Cohen emphasized that the deal preserves 'trust, transparency and integrity' in how markets operate.
Nasdaq's Digital Liquidity Networks division leads the collaboration. This unit focuses on building infrastructure that moves money and assets faster across global markets. The goal: shift toward always-on trading that doesn't stop when the bell rings at 4 p.m. eastern time.
Wall Street's Race to Tokenize Everything
Nasdaq isn't alone. The New York Stock Exchange is building its own round-the-clock trading platform for tokenized stocks and exchange-traded funds. This signals a fundamental shift: major exchanges now view blockchain as essential infrastructure, not a fringe experiment. The 2027 launch date gives both venues time to build security and compliance systems.
Payward and Nasdaq also agreed to a new market-surveillance pact. This means Nasdaq will monitor trading on Kraken's tokenized-stock platform for fraud and manipulation — the same oversight that applies to traditional stock exchanges. Regulators demanded this safeguard before approving blockchain-based equity trading at scale.
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