Nasdaq Invests $100 Million in Kraken Parent Payward

Nasdaq has made a significant move into the world of tokenized equities by investing $100 million in Payward, the parent company of global cryptocurrency platform Kraken. This investment is part of Nasdaq's strategy to modernize market infrastructure and bridge the gap between traditional financial systems and decentralized networks.

The partnership between Nasdaq and Payward aims to create a new model for trading tokenized public equities through the development of the Nasdaq Equity Tokens (NETs) framework. The NETs design is intended to keep public companies at the center of ownership rights, transparency, and corporate governance.

Nasdaq expects to launch NETs in the second quarter of 2027, subject to the development of necessary operational and commercial infrastructure. As part of this initiative, Nasdaq and Payward plan to continue connecting the NETs design with Payward's xStocks ecosystem, creating infrastructure for tokenized equities to move across different market environments.

The companies are now focusing on distribution, settlement, and trading capabilities required to support broader adoption of tokenized equities. Interoperability is expected to be an important part of this work. Nasdaq's goal is not simply to create a digital representation of an equity security but to develop infrastructure that allows tokenized shares to operate across new trading and settlement environments while preserving the underlying characteristics and protections associated with public-company ownership.

Nasdaq's investment in Payward also creates a financial alignment between the two companies beyond their existing technology collaboration. Nasdaq said the investment reflects its conviction in Payward's long-term potential and the company's potential role in the modernization of financial-market infrastructure.