What to know:
- Deutsche Borse invests $200M in Kraken parent to expand blockchain-based markets.
- The deal grants a 1.5% stake, valuing Kraken near $13.3B ahead of the planned US IPO.
- Partnership targets hybrid infrastructure linking tokenized and digital assets.
Deutsche Börse moved deeper into digital assets after investing $200 million in Payward Inc., the parent of crypto exchange Kraken. The move supports plans to expand access to securities using blockchain infrastructure and integrated trading systems.
The Frankfurt-based operator will receive a 1.5% fully diluted stake in the company. The deal is expected to close in the second quarter, subject to regulatory approval. The update was confirmed in an official statement released on Tuesday.
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Kraken Targets IPO as Valuation Drops
The transaction values Kraken at around $13.3 billion based on available estimates. This represents a drop from its $20 billion valuation recorded in a November funding round. Kraken is also preparing for a potential initial public offering in the United States.
The investment follows a partnership announced between the two firms in December. The step reflects a wider trend of traditional financial institutions entering the digital asset space. Earlier this year, Intercontinental Exchange invested about $200 million in crypto exchange OKX.
Thomas Book, a member of Deutsche Börse’s management board, commented on the development. He said the partnership supports the creation of a hybrid market infrastructure. He added that both tokenized and digital assets will be integrated into one value chain.
Kraken is one of the oldest operating crypto exchanges. In November, Kraken confidentially filed an IPO in the US. That month, Kraken also secured $800 million in funding, giving the business a valuation of $20 billion.
The two companies declined to comment on the valuation attached to the latest investment. The official announcement did not offer any additional financial details. The structure of the deal is still restricted only to the verified holding and investment figures.
In recent years, the transition of digital assets into traditional finance has sped up. A clean regulatory environment in the European Union has bolstered this trend. Institutional participation in crypto markets has also been shaped by policy direction in the United States.
Kraken recently gained access to the Federal Reserve’s core payments system. This marked a key step for a crypto firm entering traditional financial infrastructure. The company also launched MiFID-regulated crypto derivatives in the European Union last year.
Tokenized Securities Drive Deutsche Börse Strategy
Furthermore, Deutsche Börse also engaged in further activities regarding the blockchain through its Clearstream division. In November, the Clearstream platform announced the launch of the securities trading system with tokenized securities.
In December 2025, Kraken announced that it would join Deutsche Börse’s foreign exchange trading platform 360T.
“The past weeks have seen significant developments at Kraken and at Deutsche Börse,” according to a Kraken spokesperson. “Our continued efforts toward collaboration have fostered mutual trust.”
The crypto market has faced pressure in recent months. For instance, Bitcoin has fallen by roughly 40% from its high in October. This has caused trouble for several digital asset trading platforms, like Kraken’s direct competitor, Gemini.
According to sources, Gemini is looking for financing as it has been scaling down its operations. Nonetheless, the institutional demand for the space still stands strong.
However, security risks continue to affect the industry. Kraken announced that it is dealing with extortion attempts related to the theft of its internal data.
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