Woofun AI reports that cryptocurrency exchange Kraken is negotiating an investment in Aave involving 35,000 ETH for 250,000 AAVE tokens and a 15% equity stake in Aave Group. This transaction values the deal at approximately $71 million, implying a $3.85 billion valuation for Aave, and marks the initial move in Payward Asset Management's broader asset management series. The exchange aims to secure a more active operational role within the decentralized finance sector through this strategic entry.

Aave founder Stani Kulechov clarified that the discussion does not involve Aave Labs selling AAVE at a discount but rather concerns the specific portion of tokens held by the entity itself. He emphasized that the negotiation stems from long-term collaboration distinct from the protocol layer, noting that all revenue from the Aave protocol and GHO stablecoin flows directly to the AAVE token. Kulechov further indicated that Aave Labs functions solely as a service provider to the DAO while the team designs Aavenomics 3.0 to introduce an automated, non-discretionary buyback mechanism.

Payward, Kraken's parent company, frames this deal as the opening act in a sequence of asset management initiatives following a year and a half of aggressive expansion.

Structurally, the firm has advanced on three distinct fronts: incubating self-built infrastructure including the L2 solution 'Ink' and the Perp DEX 'Nado'; executing strategic acquisitions such as derivatives exchange Bitnomial for $550 million and stablecoin payment company Reap for $600 million; and securing regulatory milestones like becoming the first U.S. digital asset bank with a Federal Reserve master account in March. Additional acquisitions include the tokenized stock protocol behind Backed Finance xStocks and token management platform Magna, alongside a partnership with Nasdaq to build a tokenized stock framework.

Woofun AI data shows that Kraken is evolving into a full-stack financial infrastructure company driven by its public listing ambitions, having raised $800 million last November at a $20 billion valuation. Although the IPO was paused in March due to bleak market conditions and a drop in Bitcoin prices, reports from May indicate Payward is raising new funds at the same $20 billion valuation. Co-CEO Arjun Sethi has hinted at a target to complete the IPO by the end of 2026, suggesting the firm remains committed to its capitalization strategy despite market volatility. This marks a significant consolidation of traditional banking credentials with DeFi asset ownership.