sandmark.com
Deutsche Boerse (DB1) has taken a $200mn stake in crypto exchange Kraken to deepen its hold on digital assets, according to an e-mailed statement shared with Sandmark.
The stock exchange giant bought a 1.5% stake in Payward Inc, the parent firm of Kraken, valuing the firm at $13.3bn. The Frankfurt-listed shares of the stock trading firm did not react to the news, trading marginally higher at €255.6 at 10: 15UTC.
The deal is expected to close in the second quarter, Deutsche Börse said in the statement. Bloomberg was the first to report on the deal.
Building on an existing foundation
This isn't the first deal between the two trading firms. In December, Deutsche Börse and Kraken agreed to join their technical prowess and integrate crypto trading into Deutsche's forex platform.
The German firm is following in the footsteps of its peers in adapting digital assets and taking a direct cut in crypto firms. Intercontinental Exchange (ICE), the company
behind Wall Street mainstay NYSE, had recently acquired a similarly sized stake in Kraken’s peer OKX. ICE is also heavily invested in prediction market leader Polymarket and is reportedly in talks to buy into crypto payments firm MoonPay.
Raising funds to power IPO
The stake sale gives Kraken financial gunpowder for its planned IPO. The firm had raised $800mn at a $20bn valuation ahead of its public debut.
Despite the challenges in the crypto market caused by the war in the Middle East and low liquidity, Kraken is determined to forge ahead with its plan to list in the US.