Kraken is in talks to acquire a 15% equity stake in Aave Group for roughly $71 million, according to people familiar with the matter, in a deal that would also include 250,000 AAVE tokens and 35,000 Ether. The structure implies a valuation near $385 million, significantly below AAVE’s current market capitalization of about $1.24 billion. Neither Kraken nor its parent company Payward has confirmed the negotiations.
The reported transaction is part of a wider strategy to expand Kraken’s presence in decentralized finance, as the company evolves beyond exchange services into a full-stack financial infrastructure provider.
Aave founder rejects discounted token sale claims
Shortly after the report surfaced, Aave founder Stani Kulechov denied that Aave Labs was selling tokens at a discount. He clarified that any discussions relate to equity held by the Labs entity, not protocol-level assets. Kulechov emphasized that revenues from Aave and its GHO stablecoin continue to flow to AAVE token holders under governance-approved rules.
He also revealed that Aave is working on a new tokenomics framework, “Aavenomics 3.0,” which is expected to introduce an automated token buyback mechanism. However, he did not outline what rights or benefits Kraken would receive from an equity stake if protocol income remains tied to the token.
Valuation gap raises questions
The implied discount has drawn attention across the market, especially as Aave’s fundamentals appear strong. While the AAVE token has declined करीब 20% this year, total value locked on the platform has more than doubled, recently exceeding $12 billion. This divergence suggests sustained user activity and confidence in the protocol despite price pressure on the token.
Kulechov’s comments appear aimed at separating Aave Labs from the decentralized protocol, reinforcing that governance and revenue flows remain unchanged even if equity changes hands.
Kraken accelerates expansion strategy
The potential deal comes as Kraken ramps up acquisitions and infrastructure development. Over the past 18 months, the firm has launched its Layer-2 network Ink to bring users on-chain and developed Nado, a unified trading protocol supporting spot, margin, and perpetual markets.
It has also pursued major acquisitions, including derivatives platform Bitnomial, payments firm Reap, tokenized equity platform Backed Finance, and token management company Magna. In March, Kraken became the first U.S. digital asset bank to secure a Federal Reserve master account, enabling direct settlement through Fedwire, and partnered with Nasdaq to explore tokenized equities.
IPO ambitions face market headwinds
These moves are tied to Kraken’s planned initial public offering. Payward was valued at $20 billion in a funding round last November, but listing plans stalled after a sharp drop in Bitcoin’s price and weak post-listing performance from other crypto firms.
The company has since resumed fundraising efforts at a similar valuation, with leadership stating a target to go public by the end of 2026. Recent executive changes, including a CFO replacement, have also signaled internal restructuring as part of these preparations.
DeFi momentum and strategic implications
The rumored Aave stake comes as decentralized finance shows renewed growth, with total value locked across protocols rising from about $54 billion at the start of the year to over $100 billion. For Kraken, the move would represent a deeper integration into on-chain financial systems rather than a simple expansion of trading services.
The key uncertainty remains how an equity stake in a private entity aligns with a protocol where revenue is designed to accrue to token holders. Any shift in how value flows between equity and tokens could reshape the underlying thesis for AAVE.
More broadly, the deal reflects a growing trend of firms seeking exposure to decentralized networks through regulated structures. Kraken’s positioning as a U.S. digital asset bank with direct Federal Reserve access highlights its role as a bridge between traditional finance and crypto infrastructure.
Whether the transaction proceeds—and under what terms—will likely become clearer once official filings or statements are released.
For deeper insight into DeFi–CeFi crossover and real-world tokenization, explore our guide on tokenized equities today.
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