Nasdaq Invests in Kraken Parent Payward at $21B Valuation

Nasdaq Ventures takes a direct stake in Kraken's parent company, Payward, valuing the crypto firm at $21 billion to advance tokenized equity trading.

The deal values Payward at $21 billion, according to information from Bloomberg.

Nasdaq Enters Payward’s Capital Directly

The investment, executed through Nasdaq Ventures, builds upon an agreement the two companies established in March. While their relationship previously centered on technology, this new capital connection gives Nasdaq a direct financial interest in Payward’s future growth.

For Kraken, the timing of the deal aligns with its broader business expansion beyond simple cryptocurrency trading. Payward is currently developing services for financial institutions that encompass trading, custody, settlement, and access to digital assets.

The new $21 billion valuation also highlights how the traditional financial sector is beginning to assign higher premiums to companies capable of bridging regulated markets with blockchain infrastructure.

From Equities to Tokens

At the heart of this collaboration is the development of a system designed for the trading, settlement, and custody of tokenized shares.

This model differs from typical crypto products that merely track a stock’s price. The objective is to link traditional securities and their digital representations directly to the infrastructure of regulated capital markets.

In March, Nasdaq unveiled a plan for “Nasdaq Equity Tokens,” intended to preserve the economic and corporate rights inherent in traditional shares.

Payward’s role is to provide the critical technological bridge to the blockchain environment.

The stakes go beyond allowing an investor to buy a token tracking Apple or Nvidia; the goal is to create an infrastructure where the digital form of a security integrates seamlessly with existing mechanisms for settlement, corporate actions, and ownership.

Kraken Provides Crypto Market Infrastructure

Payward brings significant practical experience to the table through xStocks, the Kraken-linked platform for tokenized equities.

The company reported in March that xStocks had surpassed $25 billion in total transaction volume, including over $4 billion in settlements performed directly on the blockchain.

This provides Nasdaq with a ready-made infrastructure and an established user base, sparing the exchange operator from having to build the entire model from scratch.

For Payward, the partnership offers reciprocal benefits. Nasdaq provides access to regulated market infrastructure and established relationships with issuers and institutional investors—connections that crypto firms often struggle to build independently.

Exchanges Prepare for Extended Trading

This investment arrives as the broader structure of capital markets undergoes a fundamental shift. Crypto platforms have conditioned investors to a 24/7 trading model, prompting traditional exchanges to gradually extend their hours and experiment with faster settlement cycles.

Tokenization could accelerate this transition by allowing assets to be transferred between different platforms outside of standard exchange windows.

However, this shift introduces new challenges, specifically the risk of liquidity fragmentation between traditional shares and their various blockchain versions.

This is where the interests of Nasdaq and Kraken converge. One party controls an established market infrastructure, while the other possesses the technology and expertise required for continuous digital markets.

The Next Test Arrives in 2027

Nasdaq plans to begin deploying its own framework for tokenized shares during the first half of 2027. This will serve as the first major test of whether the technology can evolve from a niche crypto product into infrastructure used by traditional capital markets.

The pivotal question is no longer whether major exchange operators will experiment with blockchain. Nasdaq’s investment demonstrates that the competition is shifting toward who will control the infrastructure through which traditional assets are traded and settled in digital form.