Nasdaq’s venture arm is investing $100 million in Payward, the parent company of crypto exchange Kraken, in a deal that values the company at $21 billion. The investment expands a strategic partnership the two companies first disclosed in March and centers on plans to launch blockchain-based versions of Nasdaq-listed shares in the first half of 2027.

Under the arrangement, Payward will provide settlement infrastructure and KYC and AML compliance through Payward Services for the proposed Nasdaq Equity Tokens, or NETs. The companies say the tokens are intended to mirror ordinary Nasdaq shares in shareholder voting rights while trading on systems that operate continuously rather than within standard market hours.

What the partnership covers

The agreement gives Payward a central operational role in the planned tokenized stock offering. In addition to settlement and compliance functions, Payward will integrate Nasdaq’s market-surveillance tools across its crypto, equities, tokenized-securities, futures and options venues.

The companies have framed the project as an effort to build a more connected financial system without dropping the trust and oversight expected in regulated markets. The use of Nasdaq surveillance technology alongside Payward’s compliance services is intended to support that approach.

How the tokenized shares are meant to work

Nasdaq Equity Tokens are described as blockchain-based representations of Nasdaq-listed stocks. According to the companies’ plan, they would carry the same voting rights as standard shares and trade on infrastructure available around the clock, addressing the fixed-hour structure of traditional stock markets.

Payward has argued that blockchain-based settlement can reduce delays that are common in conventional clearing systems. A key part of the technical setup is expected to be a gateway powered by xStocks, Kraken’s tokenized-equity product, which is meant to link regulated institutional markets with permissionless blockchain networks in jurisdictions where such transfers are eligible.

xStocks and the broader buildout

The xStocks connection is significant because it is intended to let tokenized shares move between traditional regulated environments and open blockchain networks. That cross-environment design sits at the center of the firms’ effort to make tokenized equities usable across different types of market infrastructure.

The source article says xStocks has processed significant volumes since launch, which the companies cite as evidence of demand for this kind of settlement model. No additional volume figures were provided in the report.

Funding momentum and competitive backdrop

Nasdaq’s investment follows another major strategic transaction for Payward earlier in 2026, when Deutsche Börse took a $200 million stake in the company. The new round also indicates that Payward’s fundraising has moved beyond its earlier $20 billion target valuation, reaching $21 billion in the Nasdaq deal.

The move comes as large exchange groups race to develop tokenized trading venues. According to the report, Nasdaq is competing with the New York Stock Exchange and the London Stock Exchange, both of which are also building tokenized-trading platforms as interest in tokenized stocks grows.

Next confirmed milestone

The next concrete step disclosed by the companies is the target launch window for Nasdaq Equity Tokens in the first half of 2027. Until then, the partnership appears focused on building the settlement, compliance and market-surveillance framework needed for the proposed product.

Whether the system will operate across jurisdictions as envisioned will depend on where movement between regulated markets and permissionless networks is considered eligible. For now, the confirmed timeline remains the H1 2027 target for launch.

Source: www.blockhead.co