Kraken Pursues 15% Stake in Aave at $385M Valuation With $55M ETH Investment

On June 26, Kraken announced it is in talks to acquire a 15% stake in Aave at a $385 million valuation, according to reports. The exchange would invest approximately 35,000 ETH (~$55 million) in exchange for 250,000 AAVE tokens (~$20 million) and a 15% common equity stake in Aave Group, the company behind the lending protocol, totaling a package worth roughly $71 million.

The move comes as Aave recovers from April's KelpDAO exploit, which triggered billions in deposit withdrawals despite Aave's smart contracts remaining uncompromised. For Kraken parent Payward, the investment represents a diversification push ahead of a potential IPO. The deal coincides with Standard Chartered initiating AAVE coverage with a price target implying nearly 50 times upside by decade's end.