Kraken eyes $71M Aave stake for DeFi expansion

Kraken is in talks to acquire a 15% stake in Aave Group for $71M, involving 35,000 ETH and 250,000 AAVE tokens, expanding its DeFi presence.

Kraken is reportedly in advanced discussions to acquire a 15% stake in Aave Group, valuing the decentralized finance protocol at around $385 million. The proposed deal would see Kraken invest 35,000 ETH—approximately $71 million—in exchange for 250,000 AAVE tokens and a 15% equity position in Aave Group. This marks the first investment under Kraken’s Payward Asset Management initiative, signaling a strategic move beyond its core exchange business into DeFi and asset management. Kraken is also considering syndicating part of the investment with external partners, reflecting its growing focus on acquisitions and investments, possibly ahead of a public listing. While neither Kraken nor Aave has officially confirmed the talks, Aave’s founder has dismissed the idea of a structured acquisition but noted that purchasing AAVE tokens remains open to all. If completed, the deal would give Kraken significant governance influence in Aave, one of the largest and most resilient DeFi lending protocols, and could channel Kraken’s user base toward Aave’s lending markets.