Nasdaq Ventures Invests 100 Million Dollars in Kraken Parent Payward at 21 Billion Valuation

Nasdaq announced on September 10, 2026 that its strategic investment arm, Nasdaq Ventures, agreed to invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken. The investment expands a partnership between the two firms that is focused on tokenized equities and market surveillance. The companies expect to launch Nasdaq Equity Tokens, or NETs, in the second quarter of 2027 with Payward's xStocks platform. Bloomberg reported that the deal values Payward at $21 billion, according to crypto.news.

Established exchange operators have been developing tokenized securities and related infrastructure to capture growing investor interest in blockchain-based assets. They are also competing with crypto-native platforms that are expanding into stocks and derivatives, including perpetual futures. Nasdaq said the companies aim to build infrastructure that allows tokenized assets to trade and settle outside conventional market hours while maintaining regulatory compliance and market safeguards.

The investment builds on a partnership announced in March 2026, when Nasdaq said it would collaborate with Payward to develop tokenization infrastructure. Just after that collaboration announcement, the exchange operator received approval from the U.S. Securities and Exchange Commission to allow certain stocks to be traded and settled in tokenized form. Nasdaq's push reflects a broader effort to connect traditional market infrastructure with blockchain-based settlement rails.

Payward is the parent company of Kraken, one of the largest crypto exchanges. Arjun Sethi, Co-CEO of Payward, said the next phase of the collaboration is planned to advance Nasdaq Equity Tokens onto rails that do not close, with shareholder rights intact. Nasdaq President Tal Cohen said expanding the relationship with Payward reflects conviction that the company can play an important role in building infrastructure that supports market evolution.

Key Facts

Reuters reported on September 10, 2026 that Nasdaq's venture arm agreed to invest $100 million in Payward, deepening a partnership aimed at developing infrastructure for trading tokenized equities. Reuters also reported that the companies expect to launch Nasdaq Equity Tokens in the second quarter of 2027 with Payward's xStocks platform. The tokens are intended to preserve the fundamental principles and benefits of regulated market infrastructure that ensures investor transparency, market integrity and liquidity.

Nasdaq said in its own announcement on September 10, 2026 that the expanded relationship includes a new market surveillance agreement. Under that agreement, Payward will adopt Nasdaq's surveillance technology across its portfolio of trading venues, including crypto, equities, tokenized equities, futures and options. Wells Fargo served as Nasdaq's exclusive capital markets advisor on the transaction.

crypto.news reported on September 10, 2026 that the deal values the privately held Payward at $21 billion, citing Bloomberg and people familiar with the matter. That figure is slightly above the $20 billion level Payward secured during an $800 million financing completed before its confidential initial public offering filing. Payward's planned IPO has been pushed back until at least the second quarter of 2027. Payward confidentially submitted a draft S-1 registration statement to the U.S. Securities and Exchange Commission in November 2025.

Payward's latest financial results showed adjusted revenue of $508 million for the second quarter of 2026, up 17 percent from a year earlier. Adjusted EBITDA fell to $23 million from $80 million, while total platform transaction volume declined 18 percent to $310 billion. Payward ended the quarter with 6.6 million funded accounts and $40 billion in assets on its platforms.

Finextra reported on September 11, 2026 that Payward will adopt Nasdaq's surveillance technology across its venues and that the next phase of the collaboration will advance global distribution, trading and post-trade capabilities needed to support broader adoption of tokenized equities. Finextra also noted that Nasdaq is not the only exchange operator working with Payward. Earlier in September 2026, the London Stock Exchange said it is bringing its 100 largest listed companies onto the blockchain, partnering with Payward to launch them as tokenized xStocks. Payward also partnered with GTN in July 2026 to take xStocks beyond U.S. equities, starting with Hong Kong-listed shares. At that point xStocks had passed 500 tokenized assets and $37 billion in transaction volume. Payward completed its acquisition of Bitnomial in May 2026 for up to $550 million in cash and stock, giving Kraken access to a regulated U.S. derivatives structure with Futures Commission Merchant, Designated Contract Market and Derivatives Clearing Organization registrations.

Analysis

The bigger picture here is that Nasdaq is not simply writing a $100 million check. It is buying deeper access to a crypto-native partner that already has tokenization technology, a global user base and a growing set of tokenized products. By combining Nasdaq's brand, regulatory experience and market infrastructure with Payward's xStocks platform, the two companies are trying to build a bridge between traditional equities and blockchain-based settlement. That bridge could allow tokenized equities to trade and settle continuously, rather than only during conventional market hours.

The strategic logic cuts both ways. Nasdaq gains a partner that can help it compete with crypto-native platforms moving into stocks and derivatives, including perpetual futures. Payward gains a powerful ally as it seeks to expand tokenized equities beyond its existing crypto audience. The surveillance agreement adds another layer: Payward will use Nasdaq's market surveillance technology across crypto, equities, tokenized equities, futures and options. That could help Payward present itself as a more regulated, institution-friendly venue as it prepares for a potential public listing.

What this really means is that the line between traditional exchanges and crypto trading platforms is becoming harder to draw. Nasdaq's investment follows its earlier partnership with Payward and the SEC approval that allowed certain stocks to be traded and settled in tokenized form. The $21 billion valuation, reported by Bloomberg through crypto.news, places Payward above the $20 billion level it reached during an $800 million financing. But the company's financial results also show pressure: adjusted EBITDA fell to $23 million from $80 million, and platform transaction volume declined 18 percent to $310 billion. That mix of high valuation and weaker profitability suggests investors are pricing in future tokenization growth rather than current earnings.

Arjun Sethi's comments about clearing and settlement highlight the market structure opportunity. He said more than $2 trillion of stock trades run through the U.S. clearing system every day, buys and sells net down by about 98 percent, and the clearing house holds $10 billion to $20 billion of collateral against what is left while it waits a day to settle. Cutting that wait from two days to one in 2024 released $3 billion, he said. Onchain settlement removes the wait. If Nasdaq and Payward can deliver that while preserving shareholder rights and regulatory safeguards, they could reduce collateral needs and free up capital across the system.

Why It Matters

For investors, tokenized equities could mean access to Nasdaq-listed stocks outside traditional trading hours and through blockchain-based rails. That could appeal to global investors who want exposure to U.S. equities but face time zone or access limitations. It could also create new ways to use equities as collateral or to settle trades more quickly. However, the companies say the tokens are intended to preserve investor transparency, market integrity and liquidity, and regulatory compliance remains a core requirement.

For market structure, the deal signals that major exchange operators are preparing for a world where tokenized assets trade alongside conventional securities. The London Stock Exchange's plan to bring its 100 largest listed companies onto the blockchain with Payward shows that this is not a single-company experiment. If tokenized equities gain traction, they could change how clearing, settlement and market surveillance work. The involvement of Wells Fargo as Nasdaq's exclusive capital markets advisor also shows that traditional financial firms are engaging with the trend.

For Payward, the investment and partnership could strengthen its position ahead of a possible IPO. The company has pushed its planned listing back to at least the second quarter of 2027, the same period targeted for the NETs launch. Its xStocks platform had passed 500 tokenized assets and $37 billion in transaction volume by July 2026. The Bitnomial acquisition gave it a regulated U.S. derivatives structure. Still, the decline in adjusted EBITDA and transaction volume shows that the path to profitability is not guaranteed.

Next Up

The main milestone to watch is the expected launch of Nasdaq Equity Tokens in the second quarter of 2027. Nasdaq and Payward will continue to advance the operational and commercial infrastructure supporting NETs, including global distribution, trading and post-trade capabilities. Payward will also roll out Nasdaq's surveillance technology across its crypto, equities, tokenized equities, futures and options venues. The companies have not announced a specific launch date within that quarter.

Beyond NETs, Payward's IPO timeline and the expansion of xStocks will be key. The London Stock Exchange partnership aims to tokenize its 100 largest listed companies, and the GTN partnership is taking xStocks beyond U.S. equities, starting with Hong Kong-listed shares. If those efforts proceed, they could provide more evidence of demand for tokenized equities and shape how far Nasdaq's partnership with Payward extends beyond the initial $100 million investment.