Nasdaq's $100 million investment in Kraken parent Payward signals a major push into tokenized equities, with plans to launch the Equity Token framework by 2027 to streamline global trade settlement.
Nasdaq's strategic $100 million investment in Payward and the development of the Equity Token (NET) framework position the company at the forefront of financial market evolution. By integrating its surveillance technology into Kraken's venues and pushing for on-chain settlement, Nasdaq is actively expanding its infrastructure capabilities to capture value from the transition to tokenized equities, which could significantly enhance its long-term revenue streams.
The partnership aims to launch the Equity Token (NET) framework to enable efficient, on-chain settlement of equities while maintaining shareholder rights.
Nasdaq gains a stake in a major exchange, expands its footprint in the tokenized asset space, and secures a client for its proprietary market surveillance technology.
Mentioned in a related story about AMC CEO criticizing Robinhood's tokenized stock offering, but no direct impact from the main news.
Nasdaq Ventures has committed $100 million to Payward, the parent company of Kraken, to accelerate the development of the Equity Token (NET) framework. This strategic partnership aims to modernize global market infrastructure by enabling on-chain settlement for equities, effectively removing traditional clearing delays and expanding Kraken's capabilities into multi-asset trading.
The partnership aims to develop the Equity Token (NET) framework, which utilizes blockchain technology to facilitate faster, more efficient settlement of equity trades, removing the need for traditional multi-day clearing cycles.