Deutsche Boerse invests $200M in Kraken ahead of IPO plans

Deutsche Boerse AG has invested $200 million in Payward Inc., the parent company of crypto trading platform Kraken.

The move signals the Frankfurt-based exchange operator’s push to expand access to securities through blockchain-based infrastructure.

The deal gives Deutsche Boerse a 1.5% fully diluted stake in Kraken.

According to a statement released by Bloomberg on Tuesday, the transaction is expected to close in the second quarter, subject to regulatory approvals.

Valuation drops from previous funding round

The latest investment values Kraken at approximately $13.3 billion, according to Bloomberg calculations.

This marks a notable decline from its $20 billion valuation during a funding round in November.

Kraken had raised $800 million in that earlier round.

The company also filed confidentially for a US initial public offering in November, indicating plans to go public as early as this year.

Both Deutsche Börse and Kraken declined to comment on the valuation tied to the latest investment.

Strategic push towards hybrid market infrastructure

The investment follows a partnership announced between the two firms in December.

It reflects a broader trend of traditional financial institutions increasing exposure to digital assets.

According to Bloomberg, Thomas Book, a member of Deutsche Boerse’s management board, said in an interview, “It’s a perfect partner for us to further accelerate on this path of creating a fully hybrid market infrastructure.”

“Irrespective of what is now the form of an asset, whether it's tokenized or fully digital, we want to create one integrated value chain.”

Earlier this year, Intercontinental Exchange Inc., the owner of the New York Stock Exchange, also invested about $200 million in crypto exchange OKX.

The move highlights growing institutional interest in the digital asset space.

Crypto integration gains momentum

The integration of digital assets into mainstream finance has accelerated in recent months.

This has been driven by policy shifts under US President Donald Trump and increasing regulatory clarity in the European Union.

Kraken became the first crypto firm to gain access to the Federal Reserve’s core payments system in March.

The company also launched MiFID-regulated crypto derivatives in the EU last year.

Meanwhile, Deutsche Boerse has been building its own blockchain capabilities.

Its Clearstream unit introduced a platform for trading tokenised securities in November.

In December, the exchange operator announced that Kraken would be integrated with its foreign-exchange trading platform, 360T.

As mentioned in the Bloomberg report, a Kraken spokesperson said in a statement on Tuesday, “The progress since then has been encouraging, and today’s announcement is a further reflection of the trust that has developed on both sides.”