Nasdaq invests $100 million in Kraken parent company Payward at $21 billion valuation

Nasdaq's venture arm has invested $100 million in Payward, the parent company of crypto exchange Kraken, valuing the firm at $21 billion, Bloomberg reported Thursday, citing people familiar with the matter.

The investment from Nasdaq’s venture arm values Payward at $21 billion and expands on a partnership with the company that was announced in March, the people said.

Kraken did not immediately respond to a CoinDesk request for confirmation.

Payward’s plans to raise funds were first reported by CoinDesk in May, when two people with knowledge of the matter revealed that Payward was seeking new capital at a $20 billion valuation.

Kraken will distribute Nasdaq’s tokenized stocks on its own platform as part of the funding agreement. The aim is to allow users to buy and own Nasdaq-listed stocks in a tokenized form, although with the same voting rights as regular equities that trade on Nasdaq’s exchange, according to the report.

Nasdaq announced plans in March to give publicly traded companies more control over their shares in tokenized form. It started working with Kraken on the infrastructure to bridge tokenized equities between regulated and onchain markets.

The deal is part of a broader push by U.S. exchange operators into blockchain infrastructure. NYSE is building its own venue for 24-7 trading of tokenized stocks and ETFs.