Nasdaq Invests $100 Million in Kraken Parent at $21 Billion Valuation

The stock exchange giant has taken a strategic stake in Payward, Kraken's parent company, as part of its push into 24/7 tokenized stock trading.

Nasdaq has invested $100 million in Payward, the parent company of cryptocurrency exchange Kraken, valuing the firm at $21 billion, according to a report published Thursday. The investment marks a significant strategic move by the traditional stock exchange operator as it accelerates its entry into digital asset infrastructure and round-the-clock trading of tokenized securities.

The deal comes as Nasdaq deepens its commitment to blockchain-based financial products, particularly tokenized versions of traditional stocks that can trade 24 hours a day, seven days a week. Traditional stock markets operate only during business hours on weekdays, but tokenized representations of equities on blockchain rails promise continuous liquidity and global access—a feature that has attracted growing interest from both retail and institutional investors.

Kraken, founded in 2011, is one of the oldest and largest cryptocurrency exchanges in the United States. The San Francisco-based platform offers trading in dozens of digital assets and has been expanding its institutional services, custody solutions, and regulatory licenses globally. The company has navigated a complex regulatory environment in recent years, including scrutiny from the U.S. Securities and Exchange Commission and other agencies.

For Nasdaq, the investment represents a hedge and a partnership strategy. As blockchain technology threatens to disrupt traditional stock trading infrastructure, exchanges like Nasdaq are positioning themselves to participate in—and potentially lead—the transition. The company has already been experimenting with blockchain for post-trade settlement and has explored launching its own digital asset marketplace.

The $21 billion valuation places Kraken among the most valuable private cryptocurrency companies globally, though still below the peak valuations seen during the 2021 bull market. The figure suggests investor confidence in the long-term viability of crypto trading platforms despite recent market volatility and regulatory uncertainty. Kraken has reportedly been considering an initial public offering for several years, though no timeline has been confirmed.

The partnership could give Nasdaq early access to Kraken's technology and user base as it builds out tokenized stock products. Conversely, Kraken gains a powerful traditional finance ally with deep regulatory experience and relationships with institutional clients. The cross-pollination between legacy financial infrastructure and crypto-native platforms is accelerating as the boundaries between the two worlds continue to blur.

Industry observers note that the deal comes at a time when other major exchanges, including the New York Stock Exchange and London Stock Exchange, are also exploring blockchain integration and 24/7 trading models. The race to tokenize traditional securities is heating up, with billions of dollars in venture capital flowing into the infrastructure needed to support this new market structure. Nasdaq's investment in Kraken signals that the convergence of crypto and traditional finance is no longer a distant possibility but an imminent reality that incumbents must actively shape or risk being left behind.