Nasdaq Inc. is investing $100 million in Payward, the parent company of crypto exchange Kraken, according to reports. The deal values Payward at $21 billion and aims to build infrastructure for tokenized stocks, with Kraken set to distribute Nasdaq's tokenized securities on its platform.
The investment reflects growing interest from traditional financial institutions in crypto infrastructure and tokenization technology. Wall Street firms have increasingly pursued deals related to digital assets and blockchain-based trading this year.
The New York Stock Exchange announced in January that it was developing a platform to allow traders to buy and sell tokenized versions of U.S.-listed equities and exchange-traded funds, with settlements occurring on the blockchain 24/7.
Kraken has pursued additional partnerships with traditional finance companies. Last week, fintech company SoFi Technologies announced a deal to route its customers' crypto orders through Kraken Prime, the exchange's prime brokerage arm, and to list SoFi's stablecoin on the platform.
In March, the S&P Dow Jones Indices made a separate deal to debut a new derivative contract on decentralized exchange Hyperliquid. Kraken has positioned itself as offering a broader range of services, marketing its app as a platform for trading stocks, bonds, and other assets alongside digital currencies.
