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The once-novel idea of putting stocks on the blockchain is gaining momentum fast. The latest example came on Thursday morning, when Nasdaq announced a $100 million investment in Payward, the parent company of the cryptocurrency exchange Kraken, that will see the two companies work on new ways to trade tokenized versions of stocks. Kraken’s valuation rose to $21 billion following the investment which first reported the news
The announcement builds on Nasdaq’s earlier work with Payward to develop Nasdaq Equity Tokens, or NETs, and connect them with Payward’s xStocks ecosystem. It also follows the Securities and Exchange Commission’s approval of a Nasdaq rule change that permits certain securities to trade and settle in tokenized form. The companies expect to formally launch the offering in the second quarter of 2027.
“The next era of market evolution will be defined by how efficiently and seamlessly capital and assets move across the financial system with durable liquidity,” said Nasdaq president Tal Cohen in a statement.
Payward will use Nasdaq’s market surveillance tools across its trading platforms to help monitor for potential manipulation and other trading abuses.
Tokenized stocks have emerged as one of crypto’s most appealing opportunities for Wall Street. Unlike traditional equities, they can be held in digital wallets, transferred directly between users and traded around the clock. Their market capitalization grew 400% over the past year to $1.7 billion in June, according to an a16z crypto report. CoinGecko data now puts the figure above $2 billion.
Since the beginning of the year, several heavyweights in crypto and traditional finance have made moves in tokenized equities.
In January, New York Stock Exchange owner Intercontinental Exchange said it planned a platform for tokenized securities trading and on-chain settlement. Securitize has partnered with the NYSE on blockchain-native shares, while Dinari offers eligible U.S. investors tokens backed by stocks and ETFs. Separately, Robinhood said in July that users in more than 120 countries could access blockchain-based stock tokens through its wallet. The product remains unavailable in the U.S. as regulators weigh its structure and investor safeguards. Coinbase, Binance, and the Depository Trust & Clearing Corp. have also pursued tokenization initiatives.
Thursday’s announcement comes amid a broader debate over whether tokenized stocks give buyers real ownership or simply exposure to a share price. Over the weekend, movie-theater chain AMC Entertainment accused Robinhood of creating an unauthorized market that imitates trading in AMC shares through its overseas platform without the company’s approval. Robinhood defended the product, arguing that brokerages can create financial instruments tied to publicly traded stocks without a company’s permission.
This story was originally featured on Fortune.com
Source: finance.yahoo.com