The integration of stocks onto blockchain is accelerating its entry into the mainstream financial system. Nasdaq announced on Thursday that it will invest $100 million in Kraken, the parent company of the crypto exchange Payward. The two parties will collaborate to develop new solutions for tokenized stock trading. According to Bloomberg, which cited informed sources, after this investment is completed, the valuation of Payward will rise to $21 billion.
Launched in the second quarter of 2027
This collaboration is built on the foundation of previous projects between the two parties. Nasdaq has previously developed Nasdaq Equity Tokens ( NETs ) together with Payward, and plans to integrate this product into the xStocks ecosystem of Payward. Both companies expect to officially launch the related services in the second quarter of 2027.
SEC has approved the rule change.
This arrangement also follows closely on the approval of changes to NASDAQ's rules by the U.S. Securities and Exchange Commission (SEC). The new rules allow for the trading and settlement of certain securities in tokenized form, providing the institutional conditions necessary for the implementation of related products.
Nasdaq President Tal Cohen stated in a declaration that the next phase of market evolution will depend on whether funds and assets can flow more efficiently within the financial system and maintain sustained liquidity.
Payward Integration with Monitoring System
According to the announcement, Payward will also utilize NASDAQ's market monitoring tools on its trading platforms to identify potential manipulation behaviors and other abnormal trading activities. This means that the cooperation between the two parties extends beyond product design to include trading surveillance and compliance infrastructure as well.
The industry is accelerating the tokenization of stocks.
Stock tokenization is becoming a direction in which both the crypto industry and traditional finance are betting on. Compared to traditional stocks, these products can be stored in digital wallets, support direct transfers between users, and enable 24/7 trading.
- a16z crypto Data shows that the market size reached $1.7 billion in June.
- CoinGecko The latest data shows that the scale has risen to over $2 billion.
- In the past year, the relevant market scale has grown by approximately 400%.
Since the beginning of this year, several institutions have successively advanced their related arrangements. In January of this year, the parent company of the New York Stock Exchange, ICE, stated that it plans to build a platform for tokenized securities trading and on-chain settlement. Securitize has collaborated with the NYSE to advance native blockchain stock products, and Dinari is also offering token products supported by stocks and ETF to eligible American investors.
Robinhood stated in July of this year that users from over 120 countries and regions can use blockchain-based stock tokens through their wallets. However, this product has not yet been launched in the United States, as regulatory authorities are still evaluating its structure and investor protection arrangements. Coinbase, Binance, as well as the U.S. Depository Trust and Clearing Corporation DTCC, are also advancing their own tokenization projects.
The debate surrounding the tokenization of stocks continues, with the focus on whether buyers actually possess real equity or merely gain exposure to stock prices. Last weekend, AMC Entertainment accused Robinhood of unauthorizedly establishing a market that mimicked the trading of AMC stocks on overseas platforms. Robinhood responded that brokers can create financial instruments linked to listed stocks without needing permission from the listed companies.
