Traditional finance is pouring into crypto. Deutsche Borse Group has confirmed a $200 million strategic investment in Payward, the parent company of crypto exchange Kraken. The move transforms an earlier partnership into a capital tie-up and bolsters Kraken's preparations for a US initial public offering.
From Collaboration to Equity: What the Deal Means
Bloomberg first reported the news, later confirmed by a Kraken spokesperson. The transaction is expected to close in Q2 2026, pending regulatory approvals. Kraken and Deutsche Borse—operator of the Frankfurt Stock Exchange and a key European settlement infrastructure provider—already partnered last year to merge traditional and crypto markets for institutional clients. The $200 million injection formalizes that relationship with a capital commitment. “We are building a single, cohesive infrastructure for institutional clients, not parallel systems,” a Kraken spokesperson said.
Valuation Drops to $13.3B Despite Strong Revenue
The investment gives Deutsche Borse roughly 1.5% of Payward's fully diluted equity, implying a valuation of about $13.3 billion. That is a roughly 33.5% discount from the $20 billion valuation when Citadel Securities invested $200 million in November 2025. Still, Payward reported $2.2 billion in adjusted revenue for fiscal 2025. The company attributed growth to a strategic pivot from spot-only trading to a broader financial services platform via acquisitions and partnerships.
IPO Progress: Confidential Filing and Expansion
Kraken confidentially filed for a US IPO in November 2025. The company has since expanded into derivatives, custody, and tokenized equities. Deutsche Borse's involvement strengthens Kraken's institutional credibility. The two plan to integrate clearing, settlement, and custody services, lowering friction for institutional crypto adoption. If Kraken goes public, it would become the second US-listed crypto exchange after Coinbase, signaling growing mainstream acceptance of regulated digital asset platforms.