Nasdaq Invests $100 Million in Kraken..."Completely Changes the Stock Market Landscape"

▲ Nasdaq (NDAQ), Kraken, US Stock Market, Tokenization/AI Generated Image

Nasdaq (NDAQ) is expanding its tokenized stock business by investing $100 million in Payward, Kraken's parent company.

According to cryptocurrency specialized media CryptoPotato on September 10 (local time), Nasdaq agreed to invest $100 million in Payward through its venture investment arm, Nasdaq Ventures. In this investment, Payward's corporate value was assessed at $21 billion. Both companies will jointly pursue the construction, distribution, and trading of tokenized stocks. The token launch is targeted for Q2 2027.

This investment expands on the collaboration announced by both companies last March. Kraken's tokenized stock product, xStocks, will provide a permissionless blockchain layer for participation in Nasdaq's issuer-led stock tokens. Payward will also adopt Nasdaq's market surveillance technology for cryptocurrency, stock, tokenized stock, futures, and options trading markets.

Payward is expanding its business into traditional financial markets. Deutsche Börse invested $200 million in Payward's equity last April. At that time, Payward's corporate value was assessed at $13.3 billion. In the same month, Kraken began offering over 11,000 US stocks and exchange-traded funds through a FINRA-regulated broker-dealer. xStocks operates on public blockchains such as Ethereum (ETH) and Solana (SOL).

Arjun Sethi, Co-CEO of Payward, emphasized that blockchain-based settlements can reduce the waiting time in traditional securities settlement processes. Sethi stated, “Settlements on the blockchain eliminate waiting times.” He explained that in the US clearing system, over $2 trillion in stock trades are processed daily, with approximately 98% of buys and sells being offset. Clearing houses hold $10 billion to $20 billion in collateral while awaiting settlement of the remaining trades. Sethi revealed that $3 billion was released in 2024 as the settlement period was reduced from two days to one.

Nasdaq President Tal Cohen stated that this collaboration advances Nasdaq's stock token business and aims to build a highly connected financial system. Nasdaq explained that when it unveiled its stock token framework this year, it was designed to maintain issuer control and shareholder rights. The company plans to build global distribution, trading, and post-trade processing capabilities in the future. Meanwhile, holders of tokenized assets do not directly own the underlying shares, and debates continue regarding what rights the tokens confer.

[Article Key Summary]

-Nasdaq (NDAQ) invested $100 million in Payward, Kraken's parent company, valuing the company at $21 billion.

-Nasdaq and Kraken are expanding their tokenized stock business and aim to launch tokens in Q2 2027.

-Payward will adopt Nasdaq's market surveillance technology for cryptocurrency, stock, tokenized stock, futures, and options markets.

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