Nasdaq Invests $100M in Payward to Launch Tokenized Equities

Nasdaq Ventures has invested $100 million in Payward, the parent company of crypto exchange Kraken, at a valuation of $21 billion. This strategic capital allocation moves the exchange operator beyond licensing its brand to actively funding the infrastructure required for tokenized equities. The initiative aims to launch Nasdaq Equity Tokens, or NETs, in the second quarter of 2027, creating a market for blockchain-based shares that carry the same legal standing as traditional securities.

The core objective of this investment is to eliminate the distinction between a digital token and the underlying asset. By adopting an issuer-sponsored model, Nasdaq ensures that public companies retain control over ownership records and corporate governance. This approach differs fundamentally from existing synthetic products, which are merely financial contracts mirroring price movements without granting direct claims on company assets or voting rights.

Legal parity defines the token structure

Nasdaq President Tal Cohen and Payward Co-CEO Arjun Sethi have emphasized that NETs will be functionally identical to traditional shares from a legal standpoint. Holding a NET will provide shareholders with voting rights, governance protections, and direct claims on corporate assets. This design choice is critical for institutional adoption, as it removes the intermediary governance layers found in other tokenized asset models where holders lack direct collateral claims.

The partnership leverages Payward’s xStocks platform as the primary distribution infrastructure. While initial collaboration was announced in March 2026, the September 2026 investment deepens the relationship into a strategic alignment. Nasdaq is funding the buildout of the specific technology stack that will power its own tokenized equity offering, ensuring that the infrastructure supports the strict regulatory and legal requirements of the U.S. capital markets.

Regulatory groundwork precedes capital commitment

Nasdaq filed a proposal with the SEC in September 2025 to facilitate tokenized trading, establishing the regulatory framework more than a year before committing capital to the initiative. This proactive regulatory engagement allows the exchange to align its technological development with evolving compliance standards. The investment in Payward now provides the necessary capital to execute this vision, ensuring that the launch of NETs in 2027 is supported by both legal clarity and robust infrastructure.

Operational efficiency drives market adoption

The launch of NETs is expected to transform settlement mechanics and market hours. Current T+1 settlement standards could be replaced by near-instant finality on-chain, while 24/7 trading would remove the artificial constraints of traditional market hours. For institutional investors, this shift introduces programmability through smart contracts, allowing for the automation of dividend distributions, corporate actions, and proxy voting. This reduces the operational overhead currently managed by custodians and transfer agents, creating a more efficient and transparent market environment as reported by GN stocks/nasdaq.