In a move that underscores the growing acceptance of blockchain‑based assets, Nasdaq announced Thursday that its venture arm will invest $100 million in Payward, the parent company of cryptocurrency exchange Kraken. The partnership aims to build a regulated infrastructure for tokenized equities, allowing investors to trade and settle shares outside traditional market hours while preserving the safeguards of a regulated market.
Why the investment matters
Nasdaq’s decision reflects a broader industry trend: established exchanges are seeking to capture investor interest in digital securities and to compete with crypto‑native platforms that are already offering tokenized stocks and derivatives. By backing Payward’s xStocks platform, Nasdaq hopes to combine its deep market‑infrastructure expertise with Kraken’s experience in digital asset trading.
Nasdaq Equity Tokens (NETs) on the horizon
The two firms expect to launch Nasdaq Equity Tokens, or NETs, in the second quarter of 2027. These tokens will represent traditional equities in a blockchain format, enabling continuous trading—”rails that do not close”—while keeping shareholder rights intact. Co‑CEO of Payward, Arjun Sethi, said the next phase of the collaboration will advance NETs onto a nonstop trading rail, preserving the fundamental principles of regulated market infrastructure, including transparency, integrity, and liquidity.
Regulatory green light
Just days after announcing the partnership, Nasdaq received approval from the U.S. Securities and Exchange Commission to allow certain stocks to be traded and settled in tokenized form. This regulatory endorsement signals that federal authorities recognize the potential of tokenized securities to operate within existing compliance frameworks.
Implications for investors and the market
For investors, the development promises greater flexibility. Tokenized equities can be bought, sold, and settled at any time, bypassing the constraints of traditional market hours. At the same time, the involvement of a major regulated exchange like Nasdaq offers reassurance that these digital assets will be subject to the same oversight and consumer protections that govern conventional securities.
Industry analysts view the Nasdaq‑Payward collaboration as a sign that the financial sector is moving beyond the early‑stage hype of cryptocurrencies toward a more mature, regulated digital‑asset ecosystem. By leveraging blockchain technology, Nasdaq hopes to modernize its offerings while staying true to its mission of safeguarding investors.
Looking ahead
The $100 million infusion will fund technology development, compliance systems, and market‑making capabilities needed to bring NETs to market. If successful, the initiative could set a benchmark for how traditional exchanges integrate blockchain solutions, potentially prompting other market participants to explore similar tokenization projects.
Nasdaq’s venture arm has not disclosed the exact terms of the investment, but the partnership signals a clear strategic commitment to the tokenization of equities—a space that many believe will become a standard component of the financial landscape in the coming years.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
