Nasdaq’s venture arm is investing $100 million in Payward, the parent company of cryptocurrency exchange Kraken, in a deal that values the firm at $21 billion, according to a Bloomberg report citing people familiar with the matter.
Partnership Extends to Tokenized Stock Distribution
The investment extends a partnership originally struck in March. Under the arrangement, Kraken will distribute Nasdaq’s tokenized stocks on its platform, giving customers access to Nasdaq-listed equities in token form. These tokenized shares carry the same voting rights as ordinary shares traded on the exchange.
Nasdaq’s Tokenized Equity Model Differs from Competitors
Most tokenized equity products provide holders with price exposure only. Nasdaq’s design takes a different approach by putting issuers at the center. The exchange operator has been building a gateway with Kraken to move tokenized equities between regulated and on-chain venues. Kraken already offers these products through Payward Services, its business-to-business arm.
Wave of Traditional Exchange Investment in Crypto Platforms
Nasdaq is the third established exchange operator to take a stake in a crypto exchange this year. In March, Intercontinental Exchange — owner of the New York Stock Exchange — invested in OKX at a $25 billion valuation, taking a board seat and agreeing to open NYSE tokenized equities markets to OKX’s 120 million accounts. The following month, Deutsche Börse paid $200 million for a 1.5% stake in Payward.
According to Bloomberg’s sources, Nasdaq plans to launch its own token in the second quarter of next year.
Payward’s Valuation Fluctuations and IPO Delays
Payward’s valuation has shifted across recent transactions. The company raised $800 million at a $20 billion valuation last November and used that figure again in April when agreeing to buy derivatives exchange Bitnomial. Deutsche Börse’s stake, purchased the same month, implied a valuation of about $13.3 billion by Bloomberg’s calculation.
The firm’s path to public markets has faced delays. Payward filed a confidential S-1 registration statement in November but shelved the listing in March — the same month Kraken became the first crypto firm granted access to the Federal Reserve’s core payments system.
