Nasdaq is expanding its partnership with Payward to develop a market infrastructure for tokenized equities, which are digital representations of publicly traded securities on a blockchain. This initiative builds on their previous collaboration to test Nasdaq Equity Tokens (NETs) and aims to launch these tokenized stocks in the second quarter of 2027.
The investment raises Payward's valuation to $21 billion, reflecting a broader trend on Wall Street to integrate tokenized securities into the mainstream market. Nasdaq's president, Tal Cohen, emphasized the importance of this partnership in creating a more connected financial system while maintaining trust and transparency.
The move could enhance trading efficiency and allow for continuous market operations. This development comes amid ongoing discussions about the nature of tokenized stocks, particularly highlighted by a recent dispute between Robinhood and AMC regarding the rights associated with tokenized shares.
Overall, this investment positions Nasdaq at the forefront of a potential evolution in how assets are traded and settled in the financial markets