Kraken Targets 15% Stake in Aave in $385 Million DeFi Expansion

The proposed transaction involves a complex asset exchange, with Kraken committing 35,000 ETH in return for 250,000 AAVE tokens and a 15% common equity stake in Aave Group. Plans are currently underway to syndicate a portion of this investment, which carries an estimated value of $71 million. While a Kraken spokesperson declined to comment and Aave remained silent on the negotiations, insiders suggest this is the inaugural move for Payward Asset Management, a newly formed unit focused on aggressive expansion into digital asset opportunities.

This move aligns with Payward’s recent push to transcend its roots as a spot cryptocurrency exchange. Following the $550 million acquisition of derivatives platform Bitnomial and the launch of a tokenized stock IPO program—which saw $30 billion in volume through its xStocks network—the company is positioning itself as a diversified financial services provider. For Aave, the investment arrives at a critical juncture, as the protocol continues to stabilize its liquidity pools following a major security incident involving the KelpDAO bridge earlier this year that left the platform managing significant bad debt.