Kraken in talks to buy 15% stake in DeFi lender Aave at $385M valuation
Kraken is in advanced talks to acquire a 15% stake in DeFi protocol Aave at a $385 million valuation, investing 35,000 ETH for 250,000 AAVE tokens and equity.
Crypto exchange Kraken is in advanced talks to acquire a 15% stake in decentralized finance protocol Aave at a $385 million valuation, according to sources familiar with the matter.
Kraken, part of Payward Inc., is negotiating to invest 35,000 ether (ETH) in return for 250,000 AAVE tokens and a 15% common equity stake in Aave Group, as per a document seen by CoinDesk. The deal is valued at approximately $71 million, and Kraken is also looking to syndicate the investment to other parties. The talks are private and sources spoke on condition of anonymity.
This potential investment highlights the growing convergence between centralized exchanges and DeFi protocols. For crypto traders, such moves signal increased institutional interest in DeFi lending platforms, which could drive demand for AAVE tokens and boost overall market sentiment. NowPrice's real-time crypto quotes show AAVE trading levels reflecting the news. The deal also underscores the strategic value of DeFi protocols as traditional crypto firms seek to expand their offerings.
If completed, the investment would give Kraken a significant foothold in the DeFi lending space. Market participants will watch for official confirmation and any regulatory implications. The broader crypto market may also react to this as a signal of further M&A activity in the sector.