Nasdaq’s $100M Investment Values Payward at $21B as Tokenization Push Accelerates

Nasdaq’s venture capital arm has disclosed a $100 million investment in Payward, the holding company behind cryptocurrency exchange Kraken, marking a key step in the exchange giant’s expansion into tokenized assets. The deal follows Nasdaq’s earlier announcement in March of a partnership with Payward, and it comes as the exchange continues to accelerate its strategy toward ‘always-on’ markets by acquiring Level Markets. The investment, disclosed in a Thursday statement, places Payward’s valuation at approximately $21 billion, according to sources familiar with the matter, though Nasdaq has not confirmed the figure publicly. The move underscores Nasdaq’s ambition to integrate tokenized versions of Nasdaq-listed stocks onto Kraken’s platform, aligning with broader industry trends in digital securities. The company had previously filed a tokenization proposal with the U.S. Securities and Exchange Commission a year ago, and in recent months, it has expanded its tokenization initiatives. Notably, Kraken has partnered with the London Stock Exchange to launch 24/7 trading for tokenized stocks tied to leading UK equities, with a launch scheduled for 2027. Deutsche Börse’s own $200 million investment in Payward in April highlights the growing competition among traditional exchanges to dominate the tokenization space. According to data from RWA.xyz, the total distributed value of tokenized stocks has reached over $2.9 billion, reflecting a 7.4% month-over-month increase. This development reflects a broader trend in the financial sector, where tokenization is seen as a way to streamline securities trading, reduce costs, and enhance liquidity. The Nasdaq-Kraken partnership, while still in early stages, represents a significant milestone in bridging the gap between traditional finance and digital assets, potentially reshaping how securities are issued, traded, and accessed globally.