Nasdaq’s venture arm has agreed to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, in a transaction that values the firm at $21 billion. The move expands a strategic partnership first announced in March and centers on developing tokenized versions of Nasdaq-listed stocks that preserve shareholder voting rights and other traditional equity features.

Under the agreement, Kraken will distribute Nasdaq Equity Tokens, known as NETs, on its platform. These tokens are designed as issuer-sponsored digital representations of publicly traded shares, allowing eligible users to hold them while retaining governance rights, regulatory protections and corporate actions tied to the underlying securities. The companies target a launch for the tokens in the second quarter of 2027.

Expanded Collaboration on Tokenized Markets

The investment adds financial backing to technology work already underway between the two firms. Nasdaq and Payward have been building an equities transformation gateway that connects regulated market infrastructure with Payward’s xStocks system. This setup is intended to enable tokenized equities to move between permissioned financial markets and supported blockchain networks in eligible jurisdictions.

Payward will also deploy Nasdaq’s market surveillance technology across its venues covering cryptocurrency, conventional equities, tokenized equities, futures and options. The technology is meant to support market integrity as Payward operates across a broader range of asset classes.

Payward co-CEO Arjun Sethi pointed to inefficiencies in traditional clearing as a driver for the shift. More than $2 trillion of stock trades pass through the U.S. clearing system daily. Buys and sells net down by about 98 percent, leaving clearing houses holding between $10 billion and $20 billion of collateral while trades await settlement. Onchain settlement, he said, removes that wait.

Valuation and Prior Investments

The $21 billion valuation marks a modest increase from the $20 billion level associated with earlier fundraising. In November 2025, Payward raised capital at that earlier figure from investors including Jane Street, DRW Venture Capital and Citadel Securities. The firm also confidentially filed for an initial public offering around the same time, though the listing has been delayed, with the second quarter of 2027 now viewed as the earliest possible window.

In April, Deutsche Börse invested $200 million in Payward for an approximately 1.5 percent fully diluted stake as part of its own plans for blockchain-based securities. The latest Nasdaq commitment arrives as major exchange operators deepen their involvement in tokenized assets. Payward has separately partnered with the London Stock Exchange to bring tokenized versions of leading UK equities to market starting in 2027, and other firms including Intercontinental Exchange have pursued related infrastructure deals.

Broader Context for Always-On Trading

The transaction aligns with Nasdaq’s wider push into round-the-clock markets. The exchange has filed proposals with U.S. regulators related to tokenized stocks and recently advanced plans involving Level Markets as part of efforts to support continuous trading. Tokenized equities overall have seen growing activity, with distributed value exceeding $2.9 billion according to recent industry data.

Payward’s second-quarter results showed adjusted revenue of $508 million, up 17 percent from the prior year, alongside $310 billion in platform transaction volume and $40 billion in assets on its platforms. The company has expanded beyond its core spot crypto business through acquisitions, including Bitnomial, which provided regulated U.S. derivatives capabilities, and has continued developing its xStocks offering. At the time of the March partnership announcement, xStocks had recorded more than $25 billion in total transaction volume, including over $4 billion settled onchain, with more than 85,000 unique holders.

The partnership positions both firms to advance infrastructure supporting the trading, settlement and custody of tokenized equities while maintaining existing market protections. Further regulatory clarity and technical execution will determine the pace of broader adoption as the 2027 launch target approaches.