Nasdaq Invests US$100 Million In Kraken Parent Payward | Crypto Work Pro
Nasdaq has introduced at this time (Thursday) that it has invested US$100 million in Payward, the mum or dad company of Kraken. The capital injection from Nasdaq’s enterprise arm goals to help the “continued evolution of tokenised market infrastructure.” The tie-up additionally includes a new market surveillance settlement.
This investment builds upon a partnership with Payward introduced in March, by which Kraken is set to distribute Nasdaq’s tokenized shares straight on its platform.
“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,” mentioned Tal Cohen, President, Nasdaq. “Expanding our relationship with Payward reflects our conviction that the company can play an important role in building the infrastructure that supports this evolution.”
Tokenization to Solve 24/7 Trading Issues?
This investment aligns with a wider movement toward 24/7 trading, in which tokenization is expected to play a central role. The New York Stock Exchange is developing a blockchain platform designed to enable 24/7 trading of tokenized equities and ETFs.
Integrating real-world assets into blockchain networks brings trading closer to how the crypto market operates, offering a potential solution to round-the-clock liquidity challenges, among others.
While tokenization promises rapid demand generation and broad distribution, it faces significant operational hurdles. A key limitation remains its current inability to consistently guarantee the actual delivery of underlying assets, an issue particularly evident with scarce and highly sought-after assets like blockbuster IPOs.
For instance, platforms together with Binance, Bybit, Bitget Wallet, and MEXC have been pressured to cancel tokenized SpaceX IPO allocations and challenge refunds to customers after failing to secure the required shares.
This article was written by Adonis Adoni at www.financemagnates.com.
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