Daily News 19

Tag: Payward

  • Kraken Parent Payward Bets Billions on Becoming Financial Infrastructure, Not Just a Crypto Exchange

    Kraken Parent Payward Bets Billions on Becoming Financial Infrastructure, Not Just a Crypto Exchange

    Key Highlights

    • Payward, the parent company of Kraken, is pursuing a regulated infrastructure strategy rather than consolidating all products under a single Kraken-branded exchange platform.
    • Architect Partners describes this as an “Everything Financial Infrastructure” model designed to power financial products across multiple brands, customer segments, and partner channels.
    • Kraken averaged approximately $1.1 billion in daily spot trading volume during the first four months of 2026, while Binance held 38.7% of top-10 centralized exchange spot volume in Q2 and Coinbase reported an 8.6% share of overall crypto trading volume in Q1.

    Payward Charts Infrastructure-First Path Distinct From Coinbase Model

    Digital-asset investment bank Architect Partners reports that Payward, the holding company behind the Kraken cryptocurrency exchange, is pursuing a fundamentally different business architecture than its primary U.S. rival, Coinbase. Rather than concentrating all products and services inside a single Kraken-branded platform, Payward is building regulated infrastructure capable of supporting multiple brands and serving outside financial institutions.

    According to Architect Partners, this approach represents a distinct aggregation layer for the digital-asset economy. “Payward appears to be choosing a different aggregation layer: the regulated infrastructure stack that can power financial products across multiple brands, customer segments, and partner channels,” the firm said. “In our view, Payward is helping define the next evolution beyond the ‘Everything Exchange’: an ‘Everything Financial Infrastructure’ model.”

    Market Position and Competitive Landscape

    The infrastructure strategy unfolds against a backdrop of significant market-share disparities among centralized exchanges. CoinGecko data indicates that Kraken averaged about $1.1 billion in daily spot trading volume during the first four months of 2026. By comparison, Binance controlled 38.7% of spot trading volume across the top-10 centralized exchanges in the second quarter of 2026, while Coinbase reported an 8.6% share of overall cryptocurrency trading volume in the first quarter.

    These figures underscore the scale challenge Kraken faces as a standalone exchange venue. Payward’s response, according to the Architect Partners analysis, is to monetize the underlying technology and regulatory licenses across a broader ecosystem of partners and brands rather than relying exclusively on direct retail exchange revenue.

    Legacy Finance Constraints Drive Blockchain Infrastructure Thesis

    Payward’s thesis centers on structural inefficiencies in the traditional financial system. The company argues that decades-old technology and market conventions continue to constrain legacy finance. Securities settlement remains slow, markets close overnight and on weekends, and banks, brokers, custodians, and clearing houses maintain separate records that require costly reconciliation.

    Kraken co-CEO Arjun Sethi articulated the cost of these boundaries. “Each boundary creates another intermediary, delay and fee,” Sethi said. In his view, blockchain-based systems offer an alternative by enabling assets to function simultaneously as investments, collateral, and programmable instruments on shared infrastructure.

    Why This Matters

    The divergence between Payward’s infrastructure-first model and Coinbase’s platform-centric approach highlights a strategic fork in the maturation of the digital-asset industry. As regulatory clarity improves in major jurisdictions, the value proposition may shift from operating a single branded exchange to providing the compliant rails—licensing, custody, settlement, and programmable asset logic—that allow traditional financial institutions, fintechs, and other brands to embed digital-asset functionality natively. If successful, Payward could generate revenue from a wider surface area of the financial system while reducing dependence on volatile retail trading volumes. The model also positions the company to benefit from the anticipated tokenization of real-world assets, which requires precisely the kind of multi-brand, regulated infrastructure Payward is building.

    Frequently Asked Questions

    How does Payward’s strategy differ from Coinbase’s?

    Coinbase concentrates its products and services within a single Coinbase-branded platform for retail and institutional users. Payward is building a regulated infrastructure stack intended to power financial products across multiple brands, customer segments, and third-party partner channels rather than funneling all activity through the Kraken exchange brand.

    What market-share data contextualizes Kraken’s position?

    CoinGecko data shows Kraken averaged roughly $1.1 billion in daily spot trading volume in the first four months of 2026. Binance held 38.7% of top-10 centralized exchange spot volume in Q2 2026, and Coinbase reported an 8.6% share of overall crypto trading volume in Q1 2026.

    What is the “Everything Financial Infrastructure” model described by Architect Partners?

    Architect Partners uses the term to describe Payward’s approach of providing a regulated, programmable infrastructure layer—covering custody, settlement, compliance, and asset issuance—that can be white-labeled or embedded by multiple brands and financial institutions, moving beyond the single-brand “Everything Exchange” paradigm.

  • Payward-Backed Reap Turns to Non-USD Stablecoins for 24/7 Cross-Border FX Settlement

    Key Highlights

    • Reap, a Visa Principal Issuer Member owned by Kraken parent Payward, plans to add a Mexican peso stablecoin to its card, cross-border payments, and treasury products.
    • The Hong Kong-based fintech is also exploring stablecoins pegged to the Hong Kong dollar, euro, South Korean won, and Japanese yen through its global stablecoin partnership with Visa.
    • Founder Daren Guo emphasizes that while public blockchains operate continuously, traditional FX settlement still relies on banking hours and can take days, with emerging-market corridors incurring 5% to 7% fees.

    Reap Expands Stablecoin Suite Beyond Dollar Denomination

    Hong Kong-based fintech platform Reap is preparing to launch a Mexican peso-denominated stablecoin across its card issuance, cross-border payments, and treasury management products, according to founder Daren Guo. The move signals a strategic push to diversify stablecoin utility beyond the U.S. dollar, which currently dominates nearly 99% of stablecoin payment volume even when commercial activity occurs in local currencies worldwide.

    Visa Partnership Enables Around-the-Clock Settlement

    Reap operates as a Visa Principal Issuer Member (VPIM), granting it the ability to issue cards on its own bank identification numbers (BINs) and support partners in more than 100 markets. The company’s global stablecoin partnership with Visa provides its card programs with around-the-clock settlement capabilities, addressing a critical friction point in traditional finance. As Guo explained, “Visa makes stablecoins settle. Reap makes them spendable.” This infrastructure allows Reap to bridge the gap between public blockchains, which run continuously, and the legacy foreign exchange system that remains tethered to banking hours, correspondent banks, and multi-day settlement cycles.

    Payward Acquisition Unlocks New Capabilities

    The expansion follows Reap’s acquisition by Payward, the parent company of cryptocurrency exchange Kraken. Guo noted that the deal “opens up additional capabilities,” including possible access to yield, tokenized equities and trading. With the backing of a major crypto exchange group, Reap is positioned to integrate deeper financial primitives into its stablecoin-powered payment rails, potentially offering clients yield-bearing instruments and tokenized asset exposure alongside core payments and treasury functions.

    Targeting High-Fee Emerging Market Corridors

    Guo highlighted the economic inefficiency of current cross-border flows, stating that “Public blockchains run continuously, but global foreign exchange (FX) still relies on banking hours, correspondent banks and settlement that can take days. In emerging and cross-border markets, moving money between currency corridors can incur fees of 5% to 7%.” By introducing stablecoins pegged to the Mexican peso, Hong Kong dollar, euro, won, and yen, Reap aims to reduce these costs and enable real-time, programmable money movement for businesses operating across currency zones.

    Why This Matters

    The stablecoin market has long been dominated by USD-pegged tokens such as USDT and USDC, creating a structural mismatch for businesses that earn and spend in non-dollar currencies. Reap’s multi-currency stablecoin roadmap, backed by Visa’s settlement network and Payward’s exchange infrastructure, represents a concerted effort to localize stablecoin utility for global commerce. If successful, the initiative could accelerate adoption of on-chain payments in Latin America, Europe, and Asia-Pacific, where businesses currently bear high FX conversion costs and settlement delays. The involvement of a Visa Principal Issuer Member also underscores growing institutional comfort with stablecoin-based payment rails, potentially setting a precedent for other fintechs to issue non-dollar stablecoins at scale.

    Frequently Asked Questions

    Which stablecoins is Reap planning to support?

    Reap is preparing to add a Mexican peso stablecoin and is exploring tokens pegged to the Hong Kong dollar, euro, South Korean won, and Japanese yen for integration across its card, cross-border payments, and treasury products.

    How does Reap’s Visa partnership enable stablecoin spending?

    As a Visa Principal Issuer Member, Reap can issue cards on its own BINs and leverage Visa’s global stablecoin partnership to provide around-the-clock settlement, making stablecoins spendable at any merchant that accepts Visa across more than 100 markets.

    What role does Payward play in Reap’s expansion?

    Payward, the parent company of Kraken, acquired Reap and provides additional capabilities including potential access to yield-generating products, tokenized equities, and trading infrastructure, enhancing Reap’s stablecoin-powered financial services suite.

  • Crypto VC funding hits $5.68B in Q2, Galaxy says

    Crypto VC funding hits $5.68B in Q2, Galaxy says

    Venture investment in crypto and blockchain companies surged 31% in the second quarter of 2026 compared to the first quarter, while deal volume rose 10%, according to a September 16 report from Galaxy Research. The rebound pushed total first-half investment to $10.018 billion across 744 deals, putting the industry on pace for roughly $20.037 billion for the full year — slightly below the $20.3 billion recorded in 2025.

    Q2 Rebound Driven by Later-Stage Financing

    The second quarter saw $5.683 billion deployed across 384 deals, a sharp recovery from Q1 when startups received around $4 billion across 355 deals. Galaxy’s Q1 report showed capital falling by about half quarter-over-quarter after a large later-stage financing surge in late 2025.

    The Q2 rebound was larger in dollar terms than in transaction volume. Capital increased 31% while deal count rose only 10%, indicating that larger financings accounted for much of the quarterly increase. Galaxy said the rise was driven primarily by later-stage transactions, with mature companies receiving approximately 78% of the capital invested during the quarter.

    Deal Sizes Reach New Highs

    Galaxy reported a median crypto deal size of roughly $4.9 million in Q2, a new high. However, valuation information was available for only 16% of Q2 transactions and was heavily weighted toward later-stage companies.

    By transaction count, pre-seed rounds accounted for 21% of completed deals, while later-stage investments represented 26%. This distribution produced a large gap between the number of early-stage transactions and the amount of capital committed to mature companies. Early-stage businesses continued to attract deals, but larger financing rounds drove the majority of dollars invested.

    Trading and Exchange Category Dominates Capital Allocation

    Trading, exchange, investing and lending companies received roughly $3.523 billion during the quarter, representing close to three-fifths of all crypto venture capital invested in Q2. DeFi followed with approximately $478 million. More than 90% of the capital invested in the trading, exchange, investing and lending category went to later-stage companies.

    By deal count, trading, exchange, investing and lending companies recorded 51 transactions. DeFi and payments/rewards each recorded 40 deals. Web3, NFT, DAO, metaverse and gaming companies completed 37 deals, followed by tokenization with 36, enterprise blockchain with 34, and infrastructure with 32.

    Bitcoin Price Correlation Remains Weak

    Galaxy’s data shows that the relationship between bitcoin prices and crypto venture activity remains weaker than during the 2017 and 2021 cycles. Bitcoin reached new highs in late 2025 while venture activity moved unevenly, although both bitcoin and venture investment increased during Q2 2026.

    U.S. Companies Capture Lion’s Share of Capital

    U.S.-headquartered companies captured 73.5% of the capital represented in Galaxy’s Q2 dataset. The United Kingdom followed with 4%, while France accounted for 3.2%. The U.S. share was smaller when measured by transaction count: American companies represented 39.1% of the 384 deals, followed by the United Kingdom at 7% and Singapore at 5.7%.

    The geographic concentration was higher than in Q1, when U.S.-based startups received 70.2% of capital and represented 43.5% of completed transactions, according to Galaxy’s earlier report.

    Recent Notable Financing Activity

    Recent financing activity has included transactions involving exchanges, stablecoin payments, and tokenized markets. Payward, the parent company of Kraken, was the largest disclosed crypto funding deal during the September 5–11 period after Nasdaq Ventures agreed to invest $100 million in the company. Latitude raised $35 million in a Series A during the same week to develop stablecoin-based cross-border payment infrastructure, while Antarctic Exchange announced a $7 million financing tied to its derivatives trading platform.

    Fundraising Concentrated Among Fewer New Funds

    Five new crypto-focused funds raised approximately $3.9 billion in Q2, according to Galaxy. The firm said the number of new funds was the lowest for a quarter since Q3 2019. Galaxy cited macroeconomic conditions, investor interest in artificial intelligence, spot crypto exchange-traded products, and digital asset treasury companies as factors competing for allocator capital.

    The report stated that “fund managers still face a difficult environment.”

    The dollar amount raised was higher than the roughly $1.1 billion secured across eight new funds in Q1. Galaxy’s first-quarter report described Q1 as the lowest quarterly new-fund count since Q3 2020. If first-half fundraising continues at the same pace, Galaxy estimates that crypto venture funds could raise around $10 billion during 2026, above the $8.75 billion raised in 2025. The average fund size reached approximately $377.98 million, while the median fund size stood near $80 million.

    Weekly Activity Shows Continued Momentum

    During September 5–11, five disclosed crypto funding deals totaled $151 million, according to crypto.news. Payward’s $100 million transaction accounted for roughly two-thirds of the weekly total. Galaxy’s next quarterly dataset will provide the next measurement of venture activity after the Q2 rebound.

  • Payward’s $100M Deal Leads Latitude’s $35M Crypto VC Funding Round

    Payward’s $100M Deal Leads Latitude’s $35M Crypto VC Funding Round

    Crypto Funding Weekly: $151 Million Across Five Deals Led by Nasdaq’s $100 Million Kraken Investment

    Crypto companies disclosed $151 million in new financing across five deals during the week of September 5–11, 2026. The total is dominated by Nasdaq Ventures’ agreement to invest $100 million in Payward, the parent company of Kraken, and a $35 million Series A for stablecoin payments infrastructure provider Latitude. The figures capture announced financing agreements rather than completed cash transfers in every case, and exclude rounds with undisclosed amounts, valuation changes without new capital, and acquisitions.

    Nasdaq Ventures Commits $100 Million to Payward for Tokenized Equities Collaboration

    On September 10, Nasdaq announced that its venture arm had signed an agreement to invest $100 million in Payward. The exchange operator emphasized that the announcement describes an agreement to invest, meaning the capital is counted as announced financing rather than cash already received. The deal represents roughly 66% of the week’s total disclosed volume.

    The partnership extends existing work between Nasdaq and Payward on tokenized equities. Nasdaq stated the companies plan to connect its proposed Nasdaq Equity Tokens design with Payward’s xStocks infrastructure. Additionally, Payward will adopt Nasdaq’s market surveillance technology across its trading venues. Nasdaq targets a second-quarter 2027 launch for its equity-token design, a timeline the company characterizes as a target rather than a guaranteed launch date. The initiative directly involves U.S. securities-market infrastructure, as Nasdaq operates American exchanges and the proposed design concerns the ownership and trading of tokenized shares.

    Latitude Raises $35 Million Series A to Bridge Stablecoin Settlement and Local Payments

    Oak HC/FT led Latitude’s $35 million Series A, announced September 9. The company builds infrastructure that uses stablecoins for settlement while delivering payments to recipients through local banking and payment systems. Oak described Latitude’s product as a single interface for businesses sending money across markets, with an investment thesis centered on the operational work required to turn stablecoin transfers into usable local-currency payments, including banking connections, liquidity management, and compliance.

    The financing carries a practical U.S. regulatory angle: the investor noted Latitude has secured money-transmitter licenses or approvals across 45 U.S. markets, providing a regulated route for businesses originating payments in the United States that need to pay recipients abroad. The $35 million reflects only the new Series A; an earlier $8 million round from March falls outside this weekly tally. Together, Payward and Latitude account for $135 million, or approximately 89% of the five deals’ disclosed value.

    Antarctic Exchange Secures $7 Million for Decentralized Perpetual Futures Platform

    Antarctic Exchange announced a $7 million financing round on September 7 for its decentralized perpetual-futures platform. The company-supplied announcement, published by Crypto Fundraising, named Valisa Capital Markets and Lucidity Capital as backers and indicated Republic Crypto structured the transaction’s token component. The round was structured as a SAFE-plus-token deal at a $70 million company valuation, a figure that measures the stated price of the business in the transaction and is separate from the $7 million raised.

    Antarctic states it is developing trading tools for retail derivatives users. Claims about platform standing and product performance originate from the company announcement and should be treated as company claims rather than independently verified results. This round represents the week’s largest disclosed financing for a decentralized trading platform.

    Smaller Rounds: RealGo and TINA

    RealGo Reports $6 Million Strategic Financing

    Web3 gaming company RealGo reported a $6 million strategic financing involving UZ Capital, Greenwood Global Capital, and Infinite Alliance. According to the report, the funds will be directed toward product development, team expansion, and AI research. The figure reflects the newly reported round, separate from earlier RealGo funding.

    TINA Raises $3 Million for Geospatial Data Network

    TINA announced a $3 million financing for its geospatial data network, according to ChainCatcher. Investors include THINKWARE, Gemhead Capital, Archer Capital, Astra Capital, Mayer Venture, and Tidal Capital. The company said the funding would support expansion of its location-data project and dashcam ecosystem. The report did not identify a lead investor, so backers are listed without assigning a lead role.

    Undisclosed Investments and Excluded Transactions

    Several notable transactions fall outside the $151 million total due to undisclosed amounts or structural classification.

    TRM Labs Series C Expansion

    San Francisco-based TRM Labs announced a Series C expansion on September 9 led by Blockchain Capital, with the company’s valuation reaching $2 billion, double the valuation attached to its February Series C. TRM did not disclose the amount of new capital raised. The $2 billion figure is a valuation, not funding received.

    Robinhood Equity Stakes in Crypto.com and OG.com

    Robinhood disclosed it would hold equity stakes in Crypto.com and OG.com through a prediction-markets partnership announced September 8. The companies did not disclose investment amounts. OG.com stated Robinhood would route some event-contract volume through its U.S. derivatives infrastructure. The equity arrangements are counted as two disclosed-stake transactions, but neither adds a dollar figure to the weekly total.

    Acquisitions Excluded

    Acquisitions appearing in funding databases, including Circle’s Tazapay transaction, are excluded because an acquisition price is not fresh financing raised by the acquired company.

    Methodology Note

    The deal inventory draws on CryptoRank’s funding database and Crypto Fundraising’s deal records, with transaction details checked against company, investor, and other reporting sources. The disclosed total counts each of the five dated financings once.

  • Why Nasdaq Surveillance Can’t Settle the Fight Over 24/7 Tokenized Markets

    Why Nasdaq Surveillance Can’t Settle the Fight Over 24/7 Tokenized Markets

    Nasdaq Invests $100 Million in Kraken Parent Payward as Always-On Markets Push Tests Regulatory Boundaries

    Nasdaq’s venture arm has agreed to invest $100 million in Payward, the parent company of crypto exchange Kraken, marking a significant convergence between traditional exchange infrastructure and digital-asset venues. Announced Sept. 10, the deal includes Payward’s adoption of Nasdaq surveillance technology across its portfolio of trading venues covering crypto, equities, tokenized equities, futures, and options.

    The investment arrives one day after Citadel Securities petitioned U.S. regulators to keep equity-linked products — including event contracts and perpetual derivatives tied to public companies — within the Securities and Exchange Commission’s regulatory perimeter. Together, the two moves highlight the unresolved classification questions facing always-on markets that operate beyond traditional trading hours.

    Surveillance Deal Lacks Cross-Market Data Details

    While Nasdaq’s surveillance adoption spans a broad range of asset classes, the announcement provides limited implementation specifics. No deployment date was disclosed, and the companies did not clarify whether Payward’s system would integrate order and trade data from the underlying U.S. cash-equity market — a critical capability for detecting manipulation that spans venues.

    Citadel’s Sept. 9 comment letter argues that effective oversight requires regulators to surveil equity-linked products alongside activity in the underlying cash equity. The market maker describes scenarios where traders with material nonpublic information could profit through equity-linked derivatives before issuer announcements, or use derivatives in strategies involving the price of the underlying security.

    This cross-market surveillance requirement represents a test the Nasdaq-Payward announcement does not answer: whether multi-asset monitoring also means access to the securities data needed to spot insider trading and manipulation across markets.

    Classification Determines Market Access and Investor Protections

    Surveillance technology can strengthen a venue’s case for operating an orderly market, but it cannot determine whether an equity-linked instrument qualifies as a security, security-based swap, swap, or futures contract under federal law. That classification controls the regulatory route to market and the investor protections that apply.

    Under CFTC Regulation 40.2, a designated contract market may list a product without prior Commission approval after filing a written self-certification by the preceding business day. Regulation 40.3 provides a separate voluntary approval route. The SEC does not use a uniform track for every exchange filing, creating divergent paths for similar products.

    Divergent Filings Illustrate Regulatory Split

    Recent filings demonstrate the contrast. A July 10 Cboe notice described binary options tied to issuer key performance indicators as a proposed rule change under the SEC. An Aug. 24 MEMX notice similarly described proposed securities event contracts tied to financial metrics reported by issuers.

    Meanwhile, CFTC product filings show a different trajectory. A QCEX KPI Contract was certified on June 18, while another CFTC page for organization code COIN listed US500, Tech100, Defense10, China10, and AI10 index perpetual-style futures as certified. These certifications establish regulatory status but do not prove live commercial trading, broad availability, or significant volume.

    The official record supports a narrower conclusion than claims that equity perpetuals are already broadly trading in the United States: multiple equity-index products have been certified, but the cited pages do not confirm their live commercial status.

    Bitcoin Precedent Does Not Resolve Equity Questions

    On May 29, 2026, the CFTC approved KalshiEX’s bitcoin-referencing BTCPERP under Regulation 40.3, accompanied by a policy statement calling for case-by-case review of perpetuals tied to other asset classes. That bitcoin-specific approval did not settle how equity-linked perpetuals should be classified.

    Citadel’s filing argues the SEC perimeter brings substantial protections beyond an approval process: best execution and order handling rules, front-running prohibitions, execution-quality disclosure, fair access requirements, venue transparency, coordinated trading halts, market-access controls, and safeguards against automatic deleveraging during volatile periods.

    These practical stakes mean two contracts providing exposure to similar corporate outcomes can offer vastly different disclosure, execution, and surveillance arrangements. A faster listing route widens access but creates uncertainty over which protections apply and which regulator holds the data and authority to investigate misconduct spanning the derivative and the underlying stock.

    Tokenized Equities Pilot Advances on Separate Track

    On March 18, 2026, the SEC approved Nasdaq’s rule change for eligible securities to trade in tokenized form during a Depository Trust Company pilot. Under this model, a tokenized share must be fungible with its traditional counterpart, carry the same CUSIP and symbol, provide the same shareholder rights, and trade on the same order book with the same execution priority. Market surveillance for both forms would rely on the same underlying data available to Nasdaq and FINRA.

    The March 18 approval did not equal a launch. The framework becomes effective only after DTC establishes the required infrastructure and post-trade settlement services, followed by at least 30 calendar days’ notice to members before tokenized trading begins.

    Separately, Nasdaq expects its work with Payward on Nasdaq Equity Tokens (NETs) to launch in the second quarter of 2027 — a forward-looking target. The sources do not establish that the Payward rollout and the DTC-pilot model have identical operating conditions.

    SEC Roundtable Addresses 24-Hour Trading Infrastructure

    The SEC’s Sept. 17 roundtable will bring these questions closer together without resolving them. The published agenda covers exchange and broker readiness, overnight surveillance, closing-price processes, clearance and settlement, investor protection, system resiliency, market-data continuity, and expected liquidity.

    The event concerns preparations for 24-hour trading in conventional market infrastructure, with a later panel looking toward possible future expansion to 24×7 trading. It is a public discussion, not a rulemaking decision — a distinction that prevents the debate about longer U.S. equity sessions from collapsing into the separate question of tokenized equities and perpetual derivatives that may trade continuously.

    Venues Need Both Surveillance and Legal Clarity

    The regulatory test is not a choice between surveillance and law. Venues will need both. Nasdaq’s technology could help Payward demonstrate that always-on markets are observable across its own stack. Citadel’s argument is that equity-linked oversight must also reach the underlying securities market and fit the statutory boundary between the SEC and CFTC.

    Until those pieces align, the fastest token rail will not necessarily deliver the broadest U.S. access. The products that reach users with durable liquidity may be the ones that combine continuous monitoring, cross-market data, operational resilience, and a classification regulators can defend.

  • Nasdaq Invests $100M in Kraken Parent Payward at $21B Valuation

    Nasdaq Invests $100M in Kraken Parent Payward at $21B Valuation

    Nasdaq’s venture arm is investing $100 million in Payward, the parent company of cryptocurrency exchange Kraken, in a deal that values the firm at $21 billion, according to a Bloomberg report citing people familiar with the matter.

    Partnership Extends to Tokenized Stock Distribution

    The investment extends a partnership originally struck in March. Under the arrangement, Kraken will distribute Nasdaq’s tokenized stocks on its platform, giving customers access to Nasdaq-listed equities in token form. These tokenized shares carry the same voting rights as ordinary shares traded on the exchange.

    Nasdaq’s Tokenized Equity Model Differs from Competitors

    Most tokenized equity products provide holders with price exposure only. Nasdaq’s design takes a different approach by putting issuers at the center. The exchange operator has been building a gateway with Kraken to move tokenized equities between regulated and on-chain venues. Kraken already offers these products through Payward Services, its business-to-business arm.

    Wave of Traditional Exchange Investment in Crypto Platforms

    Nasdaq is the third established exchange operator to take a stake in a crypto exchange this year. In March, Intercontinental Exchange — owner of the New York Stock Exchange — invested in OKX at a $25 billion valuation, taking a board seat and agreeing to open NYSE tokenized equities markets to OKX’s 120 million accounts. The following month, Deutsche Börse paid $200 million for a 1.5% stake in Payward.

    According to Bloomberg’s sources, Nasdaq plans to launch its own token in the second quarter of next year.

    Payward’s Valuation Fluctuations and IPO Delays

    Payward’s valuation has shifted across recent transactions. The company raised $800 million at a $20 billion valuation last November and used that figure again in April when agreeing to buy derivatives exchange Bitnomial. Deutsche Börse’s stake, purchased the same month, implied a valuation of about $13.3 billion by Bloomberg’s calculation.

    The firm’s path to public markets has faced delays. Payward filed a confidential S-1 registration statement in November but shelved the listing in March — the same month Kraken became the first crypto firm granted access to the Federal Reserve’s core payments system.

  • Payward and London Stock Exchange Partner to Tokenize Leading UK Stocks

    Payward and London Stock Exchange Partner to Tokenize Leading UK Stocks

    The London Stock Exchange (LSE) and Payward, the parent company of crypto exchange Kraken, are partnering to bring tokenized versions of the UK’s largest listed companies to blockchain-based markets.

    Under the planned initiative, Payward will tokenize the top 100 London-listed stocks as xStocks. The LSE will explore supporting trading in those tokens through LSE 24, its proposed 24-hour trading venue, subject to regulatory approval.

    Top 100 London-listed companies planned for xStocks

    The partnership would expand xStocks into one of the world’s major equity markets. Since launching just over a year ago, the tokenized stock framework has recorded more than $40 billion in total volume, including over $20 billion in onchain settlement volume.

    xStocks now have more than 200,000 holders. Payward said the framework has demonstrated how tokenized assets can give investors access to companies and markets beyond traditional geographic and market-access limitations.

    The planned UK rollout would make the top 100 London-listed companies available as xStocks to investors in more than 110 countries. The tokens would provide continuous, onchain exposure to some of the UK’s largest listed companies, although they are not currently available to UK investors, Payward stated.

    If regulators approve the arrangement, the LSE would list the xStocks and support their trading through LSE 24. The initiative could enable LSE members to trade tokenized securities representing companies from the US, EU, UK and Hong Kong alongside other asset classes, combining continuous blockchain-based trading with established regulated infrastructure.

    Payward and the LSE also plan to examine native, issuer-sponsored equity tokens. These instruments could allow LSE members to issue and service shares directly onchain while preserving the rights and fungibility associated with conventional securities.

    London Stock Exchange plans longer trading hours

    The London Stock Exchange plans to launch an overnight trading venue in the first half of 2027. The move would extend the exchange’s operating hours as it seeks to attract international retail investors and compete with the continuous accessibility of crypto markets.

    The LSE has already expanded its presence in crypto-linked products. In mid-2024, it began listing physically backed Bitcoin and Ethereum ETNs after the debut of US spot Bitcoin ETFs. Although those products initially targeted professional investors, changes by the Financial Conduct Authority have since enabled retail participation.

    The overnight venue will initially focus on exchange-traded products, giving the LSE a targeted entry point into extended-hours trading. Longer trading hours could make London-listed investment products more accessible to investors in Asia, the Middle East, North America and other markets outside the exchange’s traditional trading window.

    The exchange also intends to integrate agentic AI capabilities into the venue. The systems could support portfolio evaluation, market research and trade execution.

  • London Stock Exchange Partners With Payward to Bring the UK’s Largest Stocks On-Chain

    London Stock Exchange Partners With Payward to Bring the UK’s Largest Stocks On-Chain

    The London Stock Exchange (LSE) and Payward, the parent company of cryptocurrency exchange Kraken, have agreed to expand tokenized stock trading through Payward’s xStocks framework.

    The partnership builds on a platform that has scaled rapidly. In just over a year, xStocks have recorded more than $40 billion in total trading volume, with nearly $20 billion settled onchain. Payward said the products now have more than 200,000 holders.

    Read more: NYSE owner ICE taps tZERO for tokenized securities push, takes stake in firm

    Tokenized U.K. shares planned for global distribution

    The agreement could give U.K.-listed shares access to investors in more than 110 countries through blockchain infrastructure. However, xStocks are not currently available to investors based in the U.K.

    Subject to regulatory approval, the LSE said it will begin listing xStocks and support their trading on LSE 24, its recently announced 24-hour trading venue. The platform is expected to eventually cover tokenized equities from the United States, European Union, United Kingdom and Hong Kong, along with additional asset classes as the framework expands.

    The companies also plan to explore equity tokens issued natively by the LSE. This would allow LSE members to issue and service shares directly onchain while preserving full fungibility and the same rights attached to traditional stock.

    “For years, the assumption was that crypto and traditional finance were on a collision course, and one of them would have to lose. That was never the real story,” said Arjun Sethi, Payward’s co-CEO, in a statement.