coindesk.com
Payward, the parent company of crypto exchange Kraken, and its clients have acquired an undisclosed amount of $AAVE tokens, expanding the company’s push into decentralized finance (DeFi) and asset management.
The purchases were made through Digital Asset Special Investments I, LP, a Payward-affiliated investment fund, and its asset management clients, according to an announcement Thursday.
The tokens were bought on the secondary market, and Wyoming-based Payward said it may make further purchases. Payward and Aave are also exploring opportunities to collaborateon future opportunities, the statement said without adding details.
Payward is buying tokens on the market rather than directly from Aave, which is a "signal of alignment” between the two companies and "paving the way for future collaboration," a person familiar with the matter told CoinDesk.
The deal has evolved since CoinDesk first reported the talks in June, the person added. The earlier proposal involved 250,000 $AAVE tokens and a 15% common equity stake in Aave Group at a $385 million valuation. Thursday’s announcement makes no mention of equity.
The investment advances Payward’s effort to build an asset management business spanning digital assets, structured yield and tokenized investments. The company has organized its broader expansion around four pillars: trading, banking, asset management and Payward Services, which supplies financial infrastructure to banks, fintechs and other platforms. The strategy extends its business beyond crypto trading fees into investment products, payments and services tied to client assets.
“This investment reflects our long-term conviction in onchain credit markets and DeFi, as well as growing demand from our clients for exposure to the infrastructure shaping the future of finance,” Gurpreet Oberoi, vice president of Payward asset management and institutional, said in the statement.
Aave allows users to deposit digital assets to earn interest and borrow against collateral through blockchain-based smart contracts. The network has about $33 billion in net deposits and $11 billion in active loans, according to the statement. $AAVE holders can vote on decisions affecting the protocol and its treasury.
“Working with Payward is a strategic step toward bringing Aave to the next wave of retail and institutional users,” Aave Labs founder and CEO Stani Kulechov said in the release.
The investment comes amid broader dealmaking as crypto companies expand into payments, derivatives and tokenized securities.
