Kraken to Distribute Nasdaq Equity Tokens Under $100M Deal

Nasdaq Ventures has invested $100 million in Payward, the parent company of crypto exchange Kraken. The transaction values Payward at $21 billion and expands the companies’ work on tokenized Nasdaq-listed equities that are intended to carry the same voting rights as shares traded on Nasdaq’s traditional exchange.

Nasdaq’s $100 Million Payward Investment Expands Tokenized-Equities Partnership

Nasdaq said Thursday that its venture arm made the $100 million investment in Payward. The exchange operator described Kraken as an investment that supports its development of tokenized market infrastructure, placing the deal within Nasdaq’s broader work on Nasdaq Equity Tokens.

The investment brings Payward’s valuation to $21 billion. That figure follows reports from May that Payward was seeking new capital at a $20 billion valuation. The current transaction therefore gives the companies a financial arrangement alongside their existing technical collaboration on tokenized equities.

Under the funding agreement, Kraken will distribute Nasdaq’s tokenized stocks on its platform. The stated aim is to enable users to buy and own Nasdaq-listed stocks in tokenized form while retaining voting rights equivalent to those attached to regular equities that trade on Nasdaq’s exchange. The distribution role is a central part of the announcement: Nasdaq is developing the tokenized-equity framework, while Kraken is set to provide a platform through which the tokens can reach users.

Nasdaq has characterized the investment as support for tokenized market infrastructure rather than solely as a financial investment. The arrangement connects the investment with the companies’ work on the infrastructure needed to bridge tokenized equities between regulated markets and onchain markets.

A Strategic Bet on Always-On Tokenized Markets

The next phase of the Nasdaq and Payward collaboration is planned to move Nasdaq Equity Tokens onto rails that do not close while keeping shareholder rights intact, according to Payward co-CEO Arjun Sethi. That plan places always-on market infrastructure at the center of the expanded relationship.

Nasdaq Equity Tokens, also known as NETs, are blockchain-based representations of publicly traded stocks. Nasdaq said the collaboration is focused on building the infrastructure for tokenized equities, and its Digital Liquidity Networks division is leading the work. The next phase is expected to develop global distribution, trading and post-trade capabilities for tokenized equities.

The companies expect to launch NETs in the second quarter of 2027, according to Nasdaq. Until then, the announcement outlines the intended direction of the product and the planned roles for both companies rather than a currently available tokenized-stock offering on Kraken.

The focus on rails that do not close distinguishes the project from the schedule of traditional exchange trading. Nasdaq’s stated work is directed at market infrastructure that can support tokenized equities while maintaining the shareholder-rights feature described in the agreement. The announcement does not set out the technical mechanics for how those rights will be administered.

Exchange Operators Move Into Tokenized Equity Infrastructure

The transaction comes as U.S. exchange operators expand their blockchain infrastructure efforts. NYSE is building its own venue for round-the-clock trading of tokenized stocks and exchange-traded funds, putting another major exchange operator into the developing tokenized-equity category.

Nasdaq and Kraken had already begun working together on infrastructure intended to bridge tokenized equities between regulated and onchain markets. Nasdaq also announced plans in March to give publicly traded companies more control over their shares in tokenized form. The Payward investment builds on that earlier work rather than establishing the relationship for the first time.

In addition to the distribution arrangement, Payward has agreed to integrate Nasdaq’s market-surveillance tools into its trading operations. Nasdaq said the integration spans asset classes including crypto, equities, tokenized equities, futures and options. This element of the agreement extends the relationship beyond the planned distribution of Nasdaq Equity Tokens.

Nasdaq said the new agreement is intended to advance the commercial and operational infrastructure needed for broader adoption of tokenized equities. The companies’ existing work, the new investment and the planned surveillance-tools integration are all presented as parts of that broader infrastructure effort.

Voting Rights and the Structure of Tokenized Shares

The voting-rights component is one of the specific features described in the announcement. Kraken is expected to distribute tokenized versions of Nasdaq-listed stocks, and those tokens are intended to confer shareholder voting rights equivalent to the rights attached to shares on Nasdaq’s traditional exchange.

That description ties the proposed tokens to both economic exposure to Nasdaq-listed stocks and the shareholder-rights framework referenced by Nasdaq and Payward. The companies have said the tokens will be distributed through Kraken as part of the funding agreement, but the disclosed information does not provide a detailed account of the technical process behind the voting-rights feature.

Nasdaq’s March plans to give issuers more control over shares in tokenized form provide context for the emphasis on shareholder rights in the Payward agreement. The current announcement identifies the intended result for tokenized Nasdaq-listed stocks: users should be able to buy and own them in tokenized form with voting rights equivalent to those of regular Nasdaq-traded equities.

Other operational details are not specified in the disclosed terms. The announcement does not describe the technical enforcement of voting rights, identify a custody or transfer-agent arrangement for the share registry, or state particular regulatory approvals for the product. The available information instead focuses on the planned distribution, infrastructure development and shareholder-rights objective.

Next Steps for Nasdaq Equity Tokens

Kraken is expected to act as a distribution channel for Nasdaq’s tokenized stocks under the expanded agreement. Nasdaq and Payward plan to develop the distribution, trading and post-trade capabilities associated with tokenized equities as they prepare for the anticipated NET launch in the second quarter of 2027.

The $21 billion figure is Payward’s valuation in the transaction. It follows the companies’ expanded partnership and Nasdaq’s $100 million investment, while the planned product remains tied to the companies’ stated launch timetable.

For Nasdaq, the investment adds capital to an existing relationship with Kraken and supports its tokenized-market infrastructure work. For Payward, the agreement combines the investment with a planned role in distribution and with the integration of Nasdaq market-surveillance tools across its trading operations.

The announcement sets out a shared direction for tokenized Nasdaq-listed stocks: distribution through Kraken, voting rights equivalent to traditional Nasdaq shares, and infrastructure designed to support trading and related post-trade functions. Further details on implementation were not included in the disclosed terms.

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