Nasdaq is investing $100 million in Payward, the parent company of cryptocurrency exchange Kraken, as the two firms accelerate plans to develop and trade tokenised versions of shares.
The investment, made through Nasdaq Ventures, values Payward at $21 billion, according to Bloomberg. It forms part of an expanded partnership focused on Nasdaq Equity Tokens, or NETs, which are expected to launch in the second quarter of 2027.
The project will link Nasdaq’s regulated market infrastructure with Payward’s xStocks ecosystem, allowing tokenised equities to move between permissioned financial markets and open blockchain networks in eligible jurisdictions.
Nasdaq said the framework was being designed to preserve the rights attached to company shares, including issuer control, while enabling securities to be traded and settled using distributed ledger technology.
Tal Cohen, Nasdaq’s president, said: “The next era of market evolution will be defined by how efficiently and seamlessly capital and assets move across the financial system with durable liquidity.”
Payward co-chief executive Arjun Sethi said the next phase would put Nasdaq Equity Tokens on infrastructure that does not close, while retaining shareholder rights. Nasdaq said the initiative was intended to support continuous trading and settlement across global markets.
As part of the agreement, Payward will adopt Nasdaq’s market-surveillance technology across its trading venues, covering crypto, equities, tokenised equities, futures and options. The system is intended to help detect manipulation and other forms of market abuse.
Nasdaq Equity Tokens planned for 2027
Nasdaq began developing its equity-token framework earlier this year, presenting it as an issuer-led approach to bringing shares on to blockchain networks. The company has said that a transfer of a token should represent a transfer of the underlying security itself, rather than merely exposure to its price.
That distinction has become increasingly important as financial firms develop products that resemble shares but may not provide investors with the same ownership rights, such as voting rights or claims on company assets.
Payward’s xStocks product is already used to offer tokenised exposure to US shares and exchange-traded funds in selected markets. The product is not available to US persons or in the UK, where regulatory restrictions apply.
Nasdaq’s announcement comes as traditional exchanges and cryptocurrency firms compete to build the infrastructure for tokenised securities. The company said its collaboration with Payward would combine the safeguards of regulated markets with blockchain-based trading and settlement.
