Payward, the parent company of crypto exchange Kraken, has made a move into decentralized finance (DeFi) through a secondary-market purchase of AAVE tokens. The acquisition was made by Digital Asset Special Investments I, LP, a fund affiliated with Payward, though the exact amount of AAVE tokens acquired remains undisclosed. The investment reflects Payward's long-term confidence in onchain credit markets and DeFi, as well as growing client demand for exposure to financial infrastructure.
Gurpreet Oberoi, vice president of Payward Asset Management and Institutional, emphasized the strategic importance of the investment. He noted that it aligns with the company's vision for the future of finance. The announcement also hinted at the possibility of further AAVE purchases in the future.
This development follows a June report by CoinDesk, which suggested Payward was in talks to acquire a 15% stake in Aave at a $385 million valuation. Aave founder Stani Kulechov pushed back against the report but acknowledged discussions about potential partnership deals involving AAVE tokens. AAVE holders have governance rights over the protocol and its treasury, with revenue from Aave-branded products flowing into the DAO treasury under the 'Aave Will Win' framework approved in April.
Kulechov described the collaboration with Payward as a strategic step to expand Aave's reach to retail and institutional users. The investment underscores the growing institutional interest in DeFi and the role of AAVE in shaping the future of decentralized finance.