Nasdaq to invest $100 million in Kraken parent to deepen tokenization push

Sept. 10 (Reuters) - Nasdaq NDAQ.O said on Thursday its venture arm agreed to invest $100 million in Payward, parent company of cryptocurrency exchange Kraken, deepening a partnership aimed at developing infrastructure for trading tokenized equities.

Established exchange operators are developing tokenized securities and related infrastructure to capture growing investor interest in blockchain-based assets and compete with crypto-native platforms that are expanding into stocks and derivatives, including perpetual futures.

Here are some more details:

• Nasdaq said the companies aim to build infrastructure that allows tokenized assets to trade and settle outside conventional market hours while maintaining regulatory compliance and market safeguards.
• The companies expect to launch Nasdaq Equity Tokens (NETs) in the second quarter of 2027 with Payward's xStocks platform.
• Nasdaq said its tokens are intended to preserve the fundamental principles and benefits of regulated market infrastructure that ensures investor transparency, market integrity and liquidity.
• "The next phase of the collaboration is planned to advance Nasdaq Equity Tokens onto rails that do not close, with shareholder rights intact," said Arjun Sethi, Co-CEO of Payward.
• The investment builds on a partnership announced in March where Nasdaq said it will collaborate with Payward to develop tokenization infrastructure.
• Just after the collaboration announcement, the exchange operator also received approval from the U.S. Securities and Exchange Commission to allow certain stocks to be traded and settled in tokenized form.