- Deutsche Börse AG acquires a $200 million stake in Kraken‘s parent company, valuing the crypto exchange at $13.3 billion.
- The investment builds on an existing partnership covering FX liquidity, custody, and tokenized assets.
- The deal highlights a trend of traditional financial institutions investing in crypto incumbents to gain market access.
Frankfurt stock exchange operator Deutsche Börse AG has taken a $200 million stake in crypto exchange Kraken, a deal expected to close in Q2 pending regulatory approval according to a report. Consequently, the transaction values Kraken’s parent company at roughly $13.3 billion, down from a $20 billion valuation in November. This move follows a similar pattern seen with Intercontinental Exchange’s investment in OKX earlier this year.
Ruchir Gupta, co-founder of Gyld Finance, told Decrypt that “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 incumbents is an easy way for large traditional players to keep up with momentum and regulatory clarity. The investment builds on a strategic partnership announced in December, which has already enabled trading of tokenized equities on Deutsche Börse’s regulated venue.
Meanwhile, Kraken’s path to a public listing has been paused, with its IPO plans reportedly on hold due to difficult market conditions, according to a report. However, the company is also dealing with a recent extortion attempt involving potential access to some customer data. Kraken’s Chief Security Officer stated the firm will not engage with the attackers and is working with law enforcement.
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