German financial giant Deutsche Börse Group announced that it has made a strategic investment of $200 million in Payword, the parent company of cryptocurrency exchange Kraken.
The investment is notable because it comes as Kraken prepares for an initial public offering in the United States.
Company officials said the investment is an extension of cooperation that began several months ago between the two institutions. Under the deal, Deutsche Börse Group will own approximately 1.5% of Payward’s shares, and the investment will reportedly value the company at approximately $13.3 billion.
This figure is lower than the $20 billion valuation discussed in November. The transaction is expected to close in the second quarter of this year, subject to regulatory approval.
Kraken operates as one of the world’s largest cryptocurrency exchanges, while Deutsche Börse Group manages critical trading and clearing infrastructure across Europe, particularly the Frankfurt Stock Exchange. The two companies partnered last year with the goal of further integrating traditional financial and crypto markets.
This new investment signals that this cooperation has reached a more advanced stage and that both parties are moving towards integration not only in terms of operations but also in terms of capital base. Both companies emphasize their goal of creating a single, integrated financial infrastructure for institutional investors.
Meanwhile, Payward is said to generate adjusted revenue of $2.2 billion in 2025, with growth attributed to expansion beyond spot trading and diversification into various financial services.
*This is not investment advice.
