Nasdaq invests $100 million in Kraken parent, targets 2027 tokenized stock trading launch

• Nasdaq and Payward will launch Nasdaq Equity Tokens (NETs) in Q2 2027, building infrastructure to distribute and trade tokenized stocks on blockchain networks
• Kraken will adopt Nasdaq's market-surveillance technology across its trading venues as it expands beyond crypto into stocks, derivatives and traditional financial products
• The investment comes amid ongoing debate about tokenized stocks, including a public dispute between Robinhood and AMC over whether tokenized versions create synthetic markets or legitimate financial products referencing public equities

Summary

Nasdaq's venture capital arm has invested $100 million in Payward, the parent company of crypto exchange Kraken, to develop and launch tokenized stock trading by the second quarter of 2027. The investment values Payward at $21 billion.

The partnership will create infrastructure to distribute and trade Nasdaq Equity Tokens (NETs)—digital representations of publicly traded securities issued on blockchain networks. This expands on a previously announced collaboration to test tokenized equities. Payward will also adopt Nasdaq's market surveillance technology across its trading venues as Kraken aims to evolve from a crypto-only platform into a multi-asset trading platform offering stocks, derivatives, and other traditional financial products.

Key Players: Nasdaq and Kraken (Payward)

Investment Details: $100 million from Nasdaq Ventures, valuing Payward at $21 billion

Target Launch: Q2 2027

Nasdaq President Tal Cohen emphasized that this move reflects the company's vision for a more efficient, connected financial system. The deal represents Wall Street's growing push to integrate tokenized securities into mainstream markets, with Nasdaq positioning itself as a leader in this emerging market infrastructure.

The announcement comes amid industry debate about what tokenized stocks represent. A recent dispute between Robinhood and AMC Entertainment highlights tensions, with AMC arguing tokenized versions create "synthetic markets" offering economic exposure without actual ownership, while Robinhood defends its right to create financial products referencing public stocks.

Market Implications: This partnership signals institutional confidence in blockchain-based securities infrastructure and could fundamentally reshape how stocks are traded and distributed globally.