Deutsche Börse takes 1.5% stake in crypto exchange Kraken for $200 million

Deutsche Börse teamed up with Kraken in December to bridge traditional and digital markets and help expedite institutional cryptocurrency adoption in Europe.

What to know:

• Deutsche Börse took a $200 million stake in crypto exchange Kraken's parent Payward Inc., equivalent to a 1.5% stake in the company.
• The investment values the company at around $13.3 billion.
• Kraken announced its aim to go public in November last year, but has reportedly shelved those plans due to unfavorable market conditions.

Deutsche Börse (DB1), the owner of Frankfurt Stock Exchange and Xetra, took a $200 million stake in crypto exchange Kraken's parent Payward Inc., equivalent to a 1.5% stake in the company.

The transaction, which values the company at $13.3 billion, is expected to close in the second quarter, subject to regulatory approval, Deutsche Börse said in a Tuesday email.

Deutsche Börse teamed up with Kraken last December to bridge traditional and digital markets and help expedite institutional cryptocurrency adoption in Europe.

"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...for institutional clients," Deutsche Börse said in the email.

Kraken, which said in November that it planned to go public, is said to have put the process on hold due to unfavorable market conditions that then took hold, CoinDesk reported last month. In November, it also announced an $800 million fund raise, including $200 million from Citadel Securites.

An initial public offering (IPO) is still under consideration, but not until conditions improve.

More For You

The firm said a criminal group is attempting to extort it over limited insider-related data access incidents affecting about 2,000 accounts. Kraken says it will not pay and is working with law enforcement.

What to know:

• Kraken said a criminal group is attempting to extort the company by threatening to release videos of internal systems, but no breach occurred, and funds were never at risk.
• Two insider-related incidents involving unauthorized access to limited support data affected roughly 2,000 accounts.
• The exchange has notified impacted users, tightened...

Bitcoin tests $75,000 as $200 million in shorts face liquidation risk

30 minutes ago

Bank of Korea nominee backs central bank-led digital currency, sees limited role for stablecoins

58 minutes ago

Strategy's STRC sees record-breaking trading day, may surpass that on Tuesday

1 hour ago

Here are key bitcoin price levels to watch as the rally gathers steam

2 hours ago

NFT bull Steve Aoki sells his SHIB, ETH, and PEPE. His Bored Apes are down 88%.

4 hours ago

Nikita Bier says crypto has had a rough year, hints at building something new as X Money launch nears

4 hours ago

Ether outpaces bitcoin as ETF flows split and Ethereum activity jumps 41% on-week

6 hours ago

Bearish bets lose $430 million as BTC, ETH surge as much as 7%

6 hours ago

Crypto exchange Kraken targeted in extortion attempt but says there was no breach and no client funds at risk

19 hours ago