Kraken in Talks to Acquire 15% Stake in Aave Protocol for 35,000 ETH at $385 Million Valuation

Crypto exchange Kraken is in talks to acquire a 15% stake in DeFi lending protocol Aave, valuing the company at $385 million, according to three people familiar with the matter.

The proposed deal would see Kraken investing 35,000 ETH in exchange for 250,000 AAVE tokens and a 15% common equity stake in Aave Group. The deal is worth around $71 million and Kraken is also looking to syndicate it with other partners who want exposure to the opportunity.

Why Kraken Is Betting on Aave Right Now

According to a source familiar with Kraken’s plans, the Aave investment would be the first in a series of deals aimed at building out Payward Asset Management Kraken’s parent company taking a more deliberate and active role in DeFi and broader investment opportunities.

The timing is notable. Aave is rebuilding after one of DeFi’s most damaging crises this year. In April, attackers linked to North Korea’s Lazarus Group exploited a vulnerability in KelpDAO’s cross-chain bridge, minting roughly $292 million in unbacked tokens and depositing them as collateral on Aave to borrow real assets. Although Aave’s own smart contracts were never touched, the protocol was left with an estimated $190 million to $230 million in bad debt when the collateral became worthless. More than $8 billion in withdrawals followed as users pulled exposure across DeFi.

Kraken Is on an Acquisition Spree Ahead of Its IPO

The Aave talks are part of a broader push by Payward to build out its platform before a widely anticipated public listing. In April, Payward agreed to acquire crypto derivatives exchange Bitnomial for up to $550 million, adding a full set of US CFTC licenses covering brokerage, clearing and exchange operations. The parent company was also reported to be raising new capital at a $20 billion valuation as recently as May.

Buying into Aave while it trades at a significant discount to its recent highs driven by the KelpDAO fallout rather than any flaw in Aave itself could be a calculated bet that the protocol recovers as DeFi stabilises.