According to Bloomberg, NASDAQ is investing $100 million through its venture capital department in the parent company of the crypto exchange Kraken, Payward. This transaction corresponds to a valuation of approximately $21 billion for Payward and also further enhances the partnership established by both parties in March this year.

Cooperation points towards tokenized stocks.

The focus of this collaboration between the two parties is to advance the construction of the next-generation market infrastructure, covering the trading, settlement, and custody of tokenized stocks. Compared to mere financial investments, this funding is more akin to a strategic boost centered around specific business directions.

Tokenized stocks have recently become an area of common interest for both traditional financial institutions and crypto platforms. Related products aim to move traditional assets such as stocks onto the blockchain in order to improve transaction speed, settlement efficiency, and cross-platform liquidity.

Nasdaq Deepens Its Layout in On-Chain Finance

For Nasdaq, this investment indicates that its involvement with blockchain financial infrastructure is deepening. Its role is no longer limited to the operation of traditional securities markets; it has also begun to extend into areas such as on-chain trading and custody.

For Payward, introducing NASDAQ's funds and resources will help it expand its presence in the tokenization market. Kraken has been continuously pushing its business to extend from crypto spot trading to more asset classes in recent years, and tokenized securities are one of those directions.

• Investor: The venture capital department under NASDAQ
• Investment amount: 100 million US dollars
• Corresponding valuation: $21 billion

Cooperation between traditional exchanges and crypto platforms is heating up

This transaction also reflects that the cooperation between providers of traditional financial infrastructure and crypto platforms is becoming more concrete. In the past, it mainly stayed at the level of technical pilots and concept verification, but now it has gradually shifted towards equity investment and joint construction.

If the related plans progress smoothly, the trading, settlement, and asset custody processes of the tokenized stock market may attract more traditional institutions to participate. For Kraken, this also means that in addition to cryptocurrency exchanges, it is striving for greater access to capital markets.