Nasdaq Ventures has agreed to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, deepening a partnership focused on tokenized equities and blockchain-based market infrastructure. The investment was announced on September 10, with Bloomberg reporting the deal values Payward at $21 billion, though Nasdaq did not disclose a valuation in its public statement.
The partnership centers on Nasdaq Equity Tokens, or NETs, designed to represent shares of publicly traded companies in digital form. Unlike cryptocurrency tokens that track stock prices, NETs are intended to preserve shareholder rights, regulatory protections, and corporate actions tied to the underlying securities.
Nasdaq plans to use Payward's xStocks infrastructure to connect regulated securities markets with public blockchain networks in permitted jurisdictions. Payward will also adopt Nasdaq's market-surveillance technology across cryptocurrency, equities, tokenized equities, futures, and options. Nasdaq is targeting the second quarter of 2027 for the NET rollout.
Nasdaq President Tal Cohen stated that the partnership would help build a more connected financial system while maintaining trust, transparency, and integrity in capital markets.
xStocks Infrastructure and Market Volume
Nasdaq and Payward first announced plans for an Equities Transformation Gateway powered by xStocks in March. The system is intended to allow eligible investors to move tokenized equities between regulated markets and open blockchain networks while retaining rights and pricing tied to underlying shares.
When the partnership was announced, xStocks had processed more than $25 billion in total transaction volume, including more than $4 billion settled onchain, with more than 85,000 unique holders. Payward Services will handle know-your-customer and anti-money laundering checks for users accessing Nasdaq Equity Tokens through its platform.
Blockchain Settlement and Operational Benefits
Payward and Kraken Co-CEO Arjun Sethi highlighted potential advantages of blockchain settlement, arguing it could remove waiting periods and collateral requirements built into traditional stock clearing. Sethi stated that the companies plan to move Nasdaq Equity Tokens onto rails that do not close while maintaining shareholder rights intact.
Sethi added that xStocks aims to make equities natively interoperable across regulated financial systems and open blockchain networks, enabling customers worldwide to access the same assets through a more continuous and liquid market structure.
Payward's Expanding Financial Backing
The Nasdaq investment reflects Payward's growing ties with traditional financial firms. Citadel Securities agreed to invest $200 million at a $20 billion valuation in November 2025, while Deutsche Börse invested $200 million in April 2026 for approximately 1.5% of the fully diluted company. Payward confidentially filed for a U.S. initial public offering in November 2025.
Payward reported $508 million in adjusted revenue for the second quarter of 2026, up 17% from a year earlier, along with $310 billion in platform volume and $40 billion in assets on its platform.
Regulatory Hurdles Ahead
The partnership reflects a wider industry trend of established exchanges bringing securities onto blockchain infrastructure rather than building every component internally. Deutsche Börse and the London Stock Exchange have pursued similar strategies with tokenized equities platforms.
Key questions remain regarding how token transfers are treated under securities rules, how voting and corporate actions function onchain, and where investors will be permitted to move tokenized stocks onto open blockchain networks. The second-quarter 2027 launch of Nasdaq Equity Tokens will serve as a significant test of the companies' vision for continuously accessible tokenized stock markets.
