Crypto exchange Kraken, part of Payward Inc., is in talks to buy a 15% stake in decentralized finance protocol Aave at a $385 million valuation, according to three people familiar with the matter.
Details seen by CoinDesk show Kraken would pay 35,000 ether (ETH) in exchange for 250,000 AAVE tokens and a 15% common equity stake in Aave Group — a transaction valued at roughly $71 million. Two sources said Kraken is also looking to syndicate the deal, bringing in partners to fund a portion.
First Deal Under Payward Asset Management
According to a third source, the Aave investment is the first in a planned series of deals by Payward Asset Management. The unit aims to take a more active role in DeFi and other opportunities, with parent company providing capital and outside partners already interested in co-funding similar ventures.
A Kraken spokesperson declined to comment. Aave didn't return a request for comment by press time.
Aave's Crisis and Recovery
In April, hackers linked to North Korea's Lazarus Group exploited a KelpDAO cross-chain bridge, minting about $292 million of unbacked rsETH. They deposited the tokens as collateral on Aave and borrowed real assets, leaving Aave with an estimated $190–230 million in bad debt when the collateral became worthless. Although Aave's own smart contracts were never compromised, the event triggered over $8 billion in withdrawals, highlighting contagion risks in DeFi.
Kraken's M&A Push Ahead of IPO
Parent company Payward has stepped up acquisitions as it prepares for a potential public listing. In April, Payward agreed to buy crypto derivatives exchange Bitnomial for up to $550 million, adding CFTC-regulated brokerage, clearing, and exchange licenses. The deal signals Kraken's shift beyond spot trading into a multi-asset platform. CoinDesk reported in May that Payward was raising fresh capital at a $20 billion valuation.