Kraken, the crypto exchange owned by Payward Inc., is negotiating to acquire a 15% equity stake in the DeFi protocol Aave, placing the platform’s valuation at $385 million.
Deal Structure and Valuation
The agreement would see Kraken commit 35,000 ether (ETH) in exchange for 250,000 AAVE tokens, which together represent a $71 million investment. Kraken intends to syndicate the transaction, allowing additional investors to share in the equity portion. The arrangement grants Kraken a 15% common equity share in the Aave Group.
Strategic Direction for Payward Asset Management
According to insiders, the Aave investment marks the inaugural deal in a broader initiative to expand Payward Asset Management’s presence in decentralized finance. The firm possesses sufficient capital to backstop the venture and has assembled partners eager to fund similar crypto opportunities. This move signals a more active role for Kraken’s parent company in blockchain‑based lending and other emerging markets.
Market and Community Response
Kraken declined to comment on the negotiations, while Aave did not respond to requests for comment at the time of publication. Aave remains the largest decentralized lending protocol, enabling users to earn yield on supplied tokens and obtain loans by posting crypto collateral. The platform recovered from a significant security breach in April, an event that tested investor confidence across the crypto market.