Another CEX Receives TradFi Investment! Deutsche Boerse Invests $200 Million in Kraken

BlockBeats News, April 14th, according to Bloomberg, Deutsche Boerse Group has invested $200 million in the parent company of the cryptocurrency exchange Kraken, Payward Inc., seeking to offer a broader range of securities trading services through blockchain networks.

According to a statement on Tuesday, the transaction will give Deutsche Boerse a 1.5% fully diluted ownership stake in the company, expected to be completed in the second quarter upon regulatory approval.

Based on Bloomberg's calculations, this transaction values Kraken at about $13.3 billion. Kraken plans to go public as early as this year. The company was valued at $20 billion in a share sale last November.

Deutsche Boerse's investment comes after the two companies announced a partnership in December last year, as traditional financial firms increase their exposure to digital assets. The owner of the New York Stock Exchange, Intercontinental Exchange, earlier this year invested about $200 million in the cryptocurrency exchange OKX.

Both companies declined to comment on the valuation in the Deutsche Boerse transaction.

Deutsche Bank AG, founded in 1870 and headquartered in Frankfurt, Germany, is the country's largest bank, as well as one of Europe's and the world's leading financial institutions. With approximately 90,000 employees, the bank operates in about 60 markets and is one of the most globally interconnected banks.