Nasdaq Invests Big in Kraken Parent Company

Nasdaq's venture arm is investing $100 million in Payward, the parent company of crypto exchange Kraken, valuing it at a staggering $21 billion. This deal marks the third time this year an established exchange operator has taken a stake in a crypto exchange.

The investment extends a partnership struck between Nasdaq and Payward in March. As part of this deal, Kraken will distribute tokenized stocks issued by Nasdaq on its own platform. These tokens carry the same voting rights as ordinary shares traded on the exchange.

Nasdaq's design for tokenized equity products puts issuers at the center, rather than focusing solely on price exposure. The company has been building a gateway with Kraken to move tokenized equities between regulated and on-chain venues.

This investment adds to the growing trend of established exchange operators taking stakes in crypto exchanges. In March, Intercontinental Exchange invested in OKX at a $25 billion valuation, while Deutsche Börse paid $200 million for 1.5% of Payward in April.