Deutsche Börse AG has acquired a $200 million stake in Kraken‘s parent company, valuing the crypto exchange at $13.3 billion. The investment deepens an existing partnership covering foreign exchange, custody, and tokenized assets. An expert stated this signals a wave of traditional finance consolidation around crypto incumbents, where compliance is becoming a competitive advantage.
Frankfurt stock exchange operator Deutsche Börse AG has taken a $200 million stake in Kraken’s parent company. This transaction gives it a 1.5% fully diluted stake in Payward Inc. and values the crypto exchange at approximately $13.3 billion.
The deal is expected to close in the second quarter, pending regulatory approval. It builds upon a strategic partnership the two firms announced in December.
That partnership spans foreign exchange liquidity, custody, settlement, and tokenized assets. In February, xStocks launched on 360X, enabling trading of blockchain-based tokens representing real equities.
The reported valuation is down from Kraken’s $20 billion valuation during a November fundraising round. Last November, the exchange confidentially filed for an IPO, but the listing has since been put on hold.
Ruchir Gupta, co-founder of Gyld Finance, said “We’re seeing a clear wave of consolidation and partnerships as traditional financial institutions move to catch up with crypto.” He added that buying stakes in private companies is an easy way for large players to keep up with momentum and regulatory clarity.
The move follows Intercontinental Exchange‘s similar $200 million investment in crypto exchange OKX earlier this year. Gupta stated, “I see this as an important milestone for tokenized securities but also more broadly for the convergence of traditional markets and blockchain-based rails.”
Kraken is also dealing with a recent extortion attempt where attackers claimed access to some customer data. Chief Security Officer Nick Percoco stated the company will not engage and is working with law enforcement.
