Nasdaq Invests $100M in Kraken to Pioneer Blockchain-Based Stock Trading

Key Highlights

• Payward, Kraken’s parent entity, secured a $100 million investment from Nasdaq’s venture division
• The investment establishes Payward’s valuation at $21 billion
• Tokenized versions of Nasdaq-listed equities will be available on Kraken’s platform, preserving complete shareholder voting privileges
• Nasdaq’s market surveillance systems will be implemented across Payward’s cryptocurrency, equity, and derivatives platforms
• This funding round comes after Deutsche Börse’s $200 million April investment and Kraken’s collaboration with London Stock Exchange

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In a major move signaling Wall Street’s embrace of blockchain technology, Nasdaq announced Thursday it has committed $100 million to Payward, the entity behind cryptocurrency exchange Kraken. The transaction establishes Payward’s market capitalization at $21 billion.

Nasdaq’s venture capital division executed the investment, expanding upon an initial collaboration between the organizations revealed in March.

Blockchain-Based Equities Coming to Kraken

Under the agreement’s terms, Kraken plans to offer blockchain-based representations of Nasdaq-listed securities through its trading infrastructure. Investors will gain access to purchase and manage these digital securities while maintaining identical voting privileges as traditional shareholders.

According to Payward co-CEO Arjun Sethi, the partnership’s upcoming stage aims to introduce Nasdaq Equity Tokens on continuously operating infrastructure while preserving all shareholder entitlements.

Reports from May indicated Payward had been pursuing additional capital, targeting approximately $20 billion in valuation. The completed transaction exceeded those earlier estimates.

For Nasdaq, this capital deployment represents strategic support for its tokenized infrastructure development initiatives. The exchange submitted a tokenization framework to the US Securities and Exchange Commission twelve months ago.

Additionally, Payward plans to integrate Nasdaq’s monitoring and compliance technology throughout its operations, spanning cryptocurrency markets, traditional equities, tokenized securities, and derivatives platforms.

This partnership follows Nasdaq’s recent announcement regarding its planned acquisition of Level Markets, furthering its strategy toward continuous trading capabilities.

Traditional Exchanges Embracing Blockchain Infrastructure

Nasdaq’s initiative reflects a broader industry trend. The New York Stock Exchange has announced development of its own platform enabling round-the-clock access to tokenized equities and exchange-traded funds.

Just weeks ago, Kraken entered a partnership with the London Stock Exchange to provide nearly 24/5 access to tokenized products tracking prominent UK securities. Implementation is scheduled for 2027.

Deutsche Börse committed $200 million to Payward in April, with that agreement similarly centered on distributed ledger technology for securities and tokenized financial instruments.

Data from RWA.xyz indicates the aggregate market value of tokenized equities has surpassed $2.9 billion, representing a 7.4% increase over the preceding month.

This capital commitment underscores Nasdaq’s ongoing initiative to bridge conventional equity markets with blockchain technology and enable continuous trading operations.

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Source: https://blockonomi.com/nasdaq-invests-100m-in-kraken-to-pioneer-blockchain-based-stock-trading/