TLDR
- Nasdaq has invested $100 million in Payward, the parent company of Kraken, valuing the firm at $21 billion.
- The investment turns an earlier partnership between Nasdaq and Kraken into a direct financial stake.
- Both companies are working on a system called the Equities Transformation Gateway to support tokenized stock trading.
- The gateway is expected to launch in the first half of 2027, pending regulatory approval.
- Tokenized stock access still excludes major markets like the United States, United Kingdom, Canada, and Australia.
Nasdaq has invested $100 million in Payward, the parent company of crypto exchange Kraken. The deal values Payward at $21 billion, according to a Bloomberg report.
This investment builds on a partnership between the two companies that was first announced in March. That earlier deal focused on linking regulated stock markets with blockchain trading systems.
With this new investment, the relationship moves from a simple partnership to a financial commitment. Nasdaq is now putting money behind the idea that tokenized stocks could become a larger part of financial markets.
Nasdaq and Kraken Build Equity Trading Bridge
The two companies plan to build a system called the Equities Transformation Gateway, or ETG. This gateway will connect Nasdaq’s regulated trading systems with Kraken’s xStocks platform.
Under this plan, companies that issue stock keep control over their shares. Tokens created through the gateway are meant to carry the same rights as a regular share of stock.
This includes voting rights and other shareholder actions. The blockchain records tied to these tokens would link directly to official shareholder lists.
Nasdaq brings years of experience running regulated markets to the partnership. Kraken brings its background in crypto trading and digital asset storage.
Together, the companies say this setup could lower the barriers for large institutions entering tokenized markets. The ETG is expected to launch in the first half of 2027.
However, the launch still depends on regulatory approval. Issuer participation and reliable settlement systems will also play a role in whether the gateway succeeds.
Tokenized Stock Access Still Limited in Major Markets
Even with Nasdaq’s investment, access to tokenized stocks remains limited. Kraken’s xStocks platform currently serves more than 110 markets around the world.
But some of the largest financial markets are not included. The United States, United Kingdom, Canada, and Australia are all currently excluded from xStocks access.
This means trading activity is spread across smaller markets instead of the largest ones. Without access to bigger markets, prices can be less stable and trading spreads can stay wider.
The total value of tokenized equities is close to $2.9 billion. This is a small figure compared to traditional stock markets.
Different securities laws and custody rules in each country add more complexity. This can make it slower and more costly to expand into new markets.
Nasdaq’s involvement in protecting ownership and voting rights could help ease concerns from large institutions. Institutional investors often require strict rules around ownership before committing capital.
Real growth after the 2027 launch will depend on whether banks, brokers, and asset managers actually use the new system. Infrastructure alone will not create demand from investors.
As of now, Nasdaq and Kraken have not announced further details on regulatory approval timelines. Both companies have said more updates will follow as the gateway moves toward launch.
