Home Kraken Reportedly In Talks To Buy 15% Stake In Aave In $71M DeFi Investment

Kraken Reportedly In Talks To Buy 15% Stake In Aave In $71M DeFi Investment

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Kraken Reportedly In Talks To Buy 15% Stake In Aave In $71M DeFi Investment
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Kraken, the crypto exchange, is reportedly in talks to buy a 15% stake in the DeFi lending platform Aave, in a deal that values Aave at about $385 million. The investment, worth around $71 million, would help Kraken grow its presence in DeFi and support its plans to expand before a possible public listing. If the deal goes through, it would be the first big investment for Payward Asset Management, Kraken’s planned investment division for digital assets and blockchain financial services.

People familiar with the talks say Kraken would invest 35,000 Ether to get 250,000 AAVE tokens and a 15% equity stake in Aave Group. Sources also say Kraken is looking for more investors to join the deal and help fund it. So far, neither Kraken nor Aave has officially confirmed the discussions.

Aave is the biggest decentralized lending platform in crypto. It lets users lend digital assets and borrow against crypto collateral without using traditional banks. Smart contracts handle lending, borrowing, and liquidations automatically, making Aave a key player in DeFi.

Earlier this year, Aave faced scrutiny after attackers tied to North Korea’s Lazarus Group used unbacked collateral on another DeFi platform to borrow assets through Aave. Even though Aave’s smart contracts were not breached, the event led to billions in withdrawals and showed how risks in DeFi can be connected.

Kraken has been growing beyond its main crypto exchange business. Earlier this year, its parent company Payward agreed to buy Bitnomial, a derivatives exchange, which adds regulated futures trading and clearing in the U.S. Reports also say Payward is raising new funds at a $20 billion valuation as it gets ready for a possible IPO.

If this investment happens, it will show that big centralized exchanges are more interested in getting involved with DeFi infrastructure. Instead of just competing with decentralized platforms, Kraken seems to want to be both an investor and an active part of DeFi’s future growth.

 

 

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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