Nasdaq Invests $100 Million in Kraken Parent Payward, Targets 2027 Launch of Tokenized Nasdaq Stocks

What happened

Nasdaq is investing $100 million in Payward, the parent of crypto exchange Kraken, valuing Payward at $21 billion. The partnership aims to launch tokenized Nasdaq stocks by 2027, with Kraken as the settlement layer, trading around the clock while preserving shareholder voting rights.

Confirmed

Global impact / market context

This could let investors trade Nasdaq-listed shares at any time, increasing trading activity and fees for Nasdaq. Kraken gains a key role in settlement, which is the final step of a trade, potentially boosting its revenue and influence in both crypto and traditional finance.

Analyst inference

Tokenized stocks, which are digital versions of shares, are a growing trend. By teaming with Kraken, Nasdaq may lead this shift, possibly encouraging other exchanges to adopt similar blockchain-based trading and settlement, increasing competition and changing how stocks are traded globally.

Analyst inference

What to watch

1. The target launch is set for 2027, with Kraken serving as the settlement layer, meaning it will handle the final transfer of tokens. This timeline and role are confirmed in the article. Confirmed
2. Watch for regulatory approvals, as tokenized securities must comply with securities laws. Any delays or rejections could change the launch date or structure, so monitoring regulatory developments is key. Proposed
3. If successful, other exchanges might follow Nasdaq's lead, partnering with crypto platforms. This could increase competition in settlement services and potentially lower trading fees for investors over time. Analyst inference

Evidence

• blockhead.co