Kraken parent Payward and its clients buy an undisclosed amount of AAVE on the open market and say they may buy more

Payward, the parent company of the Kraken exchange, said on Thursday that a fund it is affiliated with, Digital Asset Special Investments I, LP, and its asset management clients have bought AAVE, the token of the Aave lending protocol. The Block reported that the tokens were bought on the secondary market, that no financial terms were disclosed, and that Payward may buy more.

Gurpreet Oberoi, a vice president at Payward Asset Management and Institutional, cited long-term conviction in onchain credit markets and DeFi and growing client demand for exposure to that infrastructure. Aave founder Stani Kulechov said, "Working with Payward is a strategic step toward bringing Aave to the next wave of retail and institutional users." Cryptonews, citing the announcement, said Aave has about $33 billion in net deposits and $11 billion in active loans, and that the two companies are exploring future opportunities together.

The announcement differs from the deal reported in June. CoinDesk then reported talks over a 15% stake at a $385 million valuation, and Kulechov disputed that report. The Block noted that AAVE holders have governance rights over the protocol and its treasury.