Nasdaq announced a $100 million investment in Payward, the parent company of cryptocurrency exchange Kraken, on Thursday. The deal aims to develop new ways to trade tokenized stocks, boosting Kraken’s valuation to $21 billion, according to Bloomberg. The companies plan to formally launch the offering in the second quarter of 2027, following the SEC’s approval of a Nasdaq rule change permitting tokenized securities trading.
The investment builds on Nasdaq’s prior collaboration with Payward to develop Nasdaq Equity Tokens (NETs) and integrate them with Payward’s xStocks ecosystem. Nasdaq president Tal Cohen highlighted the importance of seamless capital movement and liquidity in the next market evolution. Payward will also implement Nasdaq’s market surveillance tools to monitor trading platforms for manipulation and abuses.
Tokenized stocks have gained traction as a significant opportunity within crypto and Wall Street, offering advantages over traditional equities. They can be held in digital wallets, transferred directly between users, and traded 24/7. The market capitalization of tokenized stocks has surged 400% over the past year, reflecting growing institutional and retail interest in this digital asset class.
The SEC’s approval of Nasdaq’s rule change enables the trading and settlement of certain securities in tokenized form, setting the stage for the planned launch of Nasdaq Equity Tokens in mid-2027. Kraken’s valuation reaching $21 billion underscores the scale of this emerging market segment.