Deutsche Börse is buying into Kraken. The operator of the Frankfurt Stock Exchange is dropping $200 million for a stake in Payward Inc., Kraken’s parent company. Both firms confirmed the deal.
The investment values Kraken at roughly $13.3 billion. Deutsche Börse gets a 1.5% fully diluted stake. It’s pending regulatory approval. Another traditional finance giant pushes into digital assets.
The two companies already work together. They launched a partnership in December. It covers foreign exchange liquidity, custody, settlement, collateral management, and tokenized assets, according to Deutsche Börse’s press release.
Kraken now connects directly to 360T. That’s a Deutsche Börse subsidiary. It’s one of the world’s largest FX trading venues. Clients get “bank-grade” foreign exchange liquidity.
The partnership hit another milestone in February. They enabled trading of xStocks—blockchain-based tokens that mirror real equities and ETFs. The tokens are backed one-to-one by underlying assets. “This is a milestone for tokenized securities and the convergence of traditional markets with blockchain infrastructure,” industry analyst Ruchir Gupta said.
That $13.3 billion valuation? It’s down from earlier numbers. Kraken raised $800 million last November at a $20 billion valuation, according to Kraken’s blog post. The exchange has reportedly shelved its confidential IPO filing. Market conditions aren’t cooperating. Meanwhile, KRAKacquisition Corp., a Kraken-linked SPAC, raised $345 million. It’s targeting crypto or tokenization-focused firms worth up to $10 billion.
Traditional finance institutions are taking shortcuts. Building crypto operations from scratch takes forever. Buying stakes in established exchanges is faster. Deutsche Börse’s move signals something clear: regulation-ready platforms like Kraken are becoming strategic entry points. Incumbents want digital asset exposure. They especially want tokenized securities that put traditional assets onto blockchain infrastructure.
The investment comes at a rough time for Kraken. The exchange recently faced an extortion attempt. Attackers claimed access to customer data. “We will not pay and are working with law enforcement,” Nick Percoco, Chief Security Officer at Kraken, said. About 2,000 individuals may have had information viewed. The company has contacted those affected.
Industry observers see Deutsche Börse’s backing as part of something bigger. Crypto’s consolidating. An endorsement from a major regulated financial institution reassures cautious institutional clients. It may accelerate adoption of tokenized assets. The links between traditional finance and blockchain-based markets keep deepening.
