Nasdaq Backs Tokenized Equities with $100 Million Investment in Kraken Parent

Nasdaq's venture capital arm has invested $100 million in Payward, the parent company of crypto exchange Kraken. This investment is part of a partnership to launch tokenized equities by mid-2027.

The companies will develop an infrastructure to distribute and trade tokenized stocks, which are digital representations of publicly traded securities on a blockchain network.

Payward will also adopt Nasdaq's market-surveillance technology across its trading venues, including crypto and tokenized equities. This move is part of Kraken's efforts to expand beyond cryptocurrencies and into traditional financial products like stocks and derivatives.

Nasdaq president Tal Cohen said that the partnership reflects their conviction in Payward's role in building infrastructure for a more connected financial system.