Nasdaq (Nasdaq: NDAQ) announced on Sep. 10 that its strategic investment arm, Nasdaq Ventures, is investing $100 million in Payward, the parent company of the Kraken crypto exchange. The two
Nasdaq (Nasdaq: NDAQ) announced on Sep. 10 that its strategic investment arm, Nasdaq Ventures, is investing $100 million in Payward, the parent company of the Kraken crypto exchange.
The two companies also announced a partnership to launch the Equity Token (NET) framework by the second quarter of 2027.
"The next era of market evolution will be defined by how efficiently and seamlessly capital and assets move across the financial system with durable liquidity," said Nasdaq President Tal Cohen. "Expanding our relationship with Payward reflects our conviction that the company can play an important role in building the infrastructure that supports this evolution."
Related: What are tokenized stocks? Explained
Nasdaq and Payward had announced the NET partnership in March to support the tokenization of equities within "existing regulatory frameworks" which gives public issuers more control over the tokenized versions of their companies' stocks.
The latest announcement aims at the advancement of the global distribution, trading, and post-trade capabilities to support the broader adoption of tokenized equities.
Payward co-CEO Arjun Sethi underlined that over $2 trillion worth of stock trades run through the U.S. clearing system daily. Buys and sells net down by about 98%, and the clearing house holds $10 billion-$20 billion of collateral against what is left while it waits a day to settle. Cutting that waiting time from two days to one in 2024 released $3 billion, he added.
"Onchain settlement removes the wait," Sethi remarked. "The next phase of the collaboration is planned to advance Equity Tokens onto rails that do not close, with shareholder rights intact."
Payward will also adopt Nasdaq's surveillance technology across its portfolio of trading venues, including crypto, equities, tokenized equities, futures, and options, to maintain market integrity and investor confidence, as per the statement.
The integration is part of Kraken's broader plan to expand beyond crypto and turn into a multi-asset trading exchange.
As per Bloomberg, Nasdaq's investment brings Payward’s valuation to $21 billion.
The latest development comes only a week after AMC Entertainment CEO Adam Aron slammedRobinhood Markets (Nasdaq: HOOD) for offering a tokenized version of the entertainment giant's stock.
Related: Robinhood sends harsh response to AMC CEO's legal threat
