The deal, announced Tuesday (April 15), gives Deutsche Börse a 1.5% stake in Kraken parent Payward and expands on an existing partnership between the two groups to combine traditional financial markets and digital assets.
“Spanning trading, custody, settlement, collateral management, and tokenized assets, the partnership will unlock a new range of enhanced products and services that deliver frictionless access to both ecosystems, creating a holistic experience for institutional clients,” Deutsche Börse said in a news release.
A report by Bloomberg News calculated that the transaction values Kraken at $13.3 billion. The company was valued at $20 billion in a share sale in November.
Kraken had filed confidentially for an initial public offering (IPO) last fall, part of a group of crypto companies looking to go public.
The company has since then reportedly paused its IPO plans as a downturn in the crypto market has made companies more cautious about listing on the stock market.
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In other Kraken news, the company said this week it was the target of an extortion attempt. Kraken Chief Security Officer Nick Percoco said in a post X that a criminal group had threatened to release videos of the company’s internal systems with client data shown if Kraken does not comply with their demands.
“It’s important to start with the most important points: our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors,” Percoco said in the post.
The videos in question were taken during two instances of inappropriate access to a limited amount of Kraken’s client support data, with both instances being identified and shut down by Kraken, the post added.
Elsewhere from the digital asset space, new Federal Reserve data shows that the wide majority of stablecoins aren’t part of the real economy, but are rather sitting idle or circulating within crypto markets rather than being used as a payment method.
Those findings line up with research by PYMNTS Intelligence showing that while more than four in 10 middle market firms report say they have at least discussed or tested stablecoins, just 13% report actual use.
“The gap between awareness and implementation underscores a persistent hesitation among finance leaders,” PYMNTS wrote last week. “Stablecoins are regarded as potentially useful, but not yet embedded in standard financial operations.”
