Nasdaq (NDAQ) has agreed to invest $100 million in Payward, the parent company of Kraken, through its venture arm. The investment deepens a partnership to build, distribute and trade tokenized stocks, targeting a second-quarter 2027 launch for the tokens.<\/p>\n
The investment values Payward at $21 billion, according to Bloomberg, which first reported<\/a> the deal.\u00a0It expands a partnership the two firms first announced<\/a> in March to develop tokenized equities, under which Kraken\u2019s xStocks product would power a permissionless blockchain layer for Nasdaq\u2019s issuer-sponsored equity tokens.<\/p>\n Payward will also adopt Nasdaq\u2019s market surveillance technology across its crypto, equities, tokenized equities, futures and options venues.<\/p>\n Deutsche B\u00f6rse paid<\/a> $200 million for a stake that valued Payward at $13.3 billion in April, the same month Kraken began offering<\/a> more than 11,000 US stocks and ETFs through its FINRA-regulated brokerage.<\/p>\n The exchange is moving into stocks, derivatives, and other traditional financial products beyond cryptocurrency, CNBC reported. xStocks, its tokenized-equity product, runs on public blockchains including Ethereum and Solana.<\/p>\n \u201cMore than $2 trillion of stock trades run through the U.S. clearing system every day. Buys and sells net down by about 98 percent, and the clearing house holds $10 billion to $20 billion of collateral against what is left while it waits a day to settle. Cutting that wait from two days to one in 2024 released $3 billion. Onchain settlement removes the wait,\u201d said Arjun Sethi, Co-CEO of Payward.<\/p>\n Within Nasdaq, the work is led by its Digital Liquidity Networks unit, which builds always-on market infrastructure. The partnership \u201cadvances our work on Nasdaq Equity Tokens and helps build a more connected financial system while preserving the trust, transparency and integrity that underpin capital formation,\u201d said Tal Cohen, President of Nasdaq.<\/p>\n Nasdaq introduced the equity-token framework earlier this year and said the tokens are designed to keep issuer control and shareholder rights intact. The next phase will develop the global distribution, trading, and post-trade capabilities behind them, the company said.<\/p>\n Holders of tokenized assets do not have outright ownership of the underlying shares, CNBC noted, and what such tokens confer is contested, a gap now playing out in a public dispute between Robinhood and AMC Entertainment over Robinhood\u2019s tokenized AMC shares, which the studio calls a synthetic market that gives economic exposure without shareholder rights.<\/p>\n The post Nasdaq Ventures to Invest $100M in Kraken Parent Payward at $21B Valuation<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" Nasdaq (NDAQ) has agreed to invest $100 million in Payward, the parent company of Kraken, through its venture arm. The investment deepens a partnership to build, distribute and trade tokenized stocks, targeting a second-quarter 2027 launch for the tokens. The investment values Payward at $21 billion, according to Bloomberg, which first reported the deal.\u00a0It expands […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-225516","post","type-post","status-publish","format-standard","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/225516"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=225516"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/225516\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=225516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=225516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=225516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Settlement Without the Two-Day Wait<\/h2>\n
Advancing Nasdaq Equity Tokens<\/h2>\n