Deutsche Borse Group has secured a $20 and million strategic investment in Payward Inc., the parent company of cryptocurrency exchange Kraken. The transaction represents a 1.5% fully diluted stake in the firm, according to reports from Bloomberg and CoinDesk.
The deal values Kraken at roughly $13.3 billion. This figure reflects a decline from the $20 billion valuation the exchange achieved during an $800 million fundraising round last November, Decrypt reported.
The investment is expected to close in the second quarter of 2026, subject to regulatory approval, Deutsche Borse stated in an email to CoinDesk. The move builds upon a partnership the two firms established last December to bridge traditional and digital markets.
This partnership covers a wide range of financial services, including foreign exchange (FX) liquidity, custody, settlement, collateral management, and tokenized assets. Kraken has already integrated directly with 360T, a Deutsche Borse subsidiary, allowing its clients to access bank-grade FX liquidity.
In February, the collaboration reached a milestone with the launch of xStocks on 360X, Deutsche Borse’s regulated trading venue. This platform enables the trading of blockchain-based tokens representing real equities and ETFs, each backed 1:1 by underlying assets.
Institutional convergence
Industry experts view the investment as part of a broader trend of traditional finance (TradFi) entities acquiring stakes in established crypto firms. Ruchir Gupta, co-founder of Gyld Finance, told Decrypt, "We're seeing a clear wave of consolidation and partnerships as traditional financial institutions move to catch up with crypto, particularly around tokenized assets."
Gupta noted that large players often find it easier to invest in incumbents rather than building new infrastructure. "It's hard for them to build out these businesses from scratch; therefore, they are investing in incumbents to gain an edge," he said.
He further characterized the move as a milestone for tokenized securities and the convergence of blockchain rails with traditional markets. "I see this as an important milestone for tokenized securities but also more broadly for the convergence of traditional markets and blockchain-based rails," Gupta added.
Gupta also suggested that a Deutsche Borse endorsement provides a necessary vote of confidence for institutional clients. "A Deutsche Borse endorsement opens doors for institutional clients who need that vote of confidence before engaging with a firm like Kraken," he said.
This investment follows a similar pattern seen earlier this year when Intercontinental Exchange, the parent of the New York Stock Exchange, invested approximately $200 million in the crypto exchange OKX. That deal valued OKX at $25 billion, according to Decrypt.
While Kraken previously announced intentions to launch an initial public offering (IPO) in November, the exchange has reportedly shelved those plans due to unfavorable market conditions, according to CoinDesk. The exchange's recent fundraising also included a $200 million contribution from Citadel Securities, according to The Block.
