Nasdaq Ventures Invests $100 Million in Kraken Parent Payward

Nasdaq Ventures has agreed to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken, as the two companies expand a partnership focused on bringing traditional stocks onto blockchain networks.

Investment Expands Existing Partnership

The investment, announced Sept. 10, builds on a relationship Nasdaq and Payward established in March. The companies are working to develop infrastructure for tokenized securities and blockchain-based markets that could operate beyond the hours of traditional stock exchanges.

Tokenized stocks are digital representations of equity or other securities recorded on a blockchain. Depending on the structure and applicable regulations, these assets may allow investors to access financial markets through digital platforms and settlement systems.

Focus on Blockchain-Based Trading

The partnership reflects continued interest from established financial-market operators in using blockchain technology for issuance, trading and settlement. Payward will provide expertise from its cryptocurrency-market operations, while Nasdaq brings experience in operating regulated trading and market infrastructure.

The proposed systems could support trading activity outside conventional market hours, although the availability, legal structure and investor access for any tokenized products will depend on regulatory approvals and the terms established by the companies.

Broader Market Context

Financial institutions and digital-asset firms have increasingly explored tokenization as a way to represent stocks, bonds and other assets on blockchain networks. Supporters say the technology may streamline settlement and expand market access, while regulators and market participants continue to assess issues including investor protection, custody, liquidity and compliance.