Aave is in the process of recovery following the KelpDAO exploit in April, which led to a massive withdrawal of deposits, although Aave itself did not experience a breach.
By Will Canny|Edited by Cheyenne Ligon Jun 25, 2026, 5:14 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on Payward and Kraken co-CEO Arjun Sethi. (CoinDesk)SummaryShow- Kraken is exploring the possibility of acquiring a 15% ownership in Aave, which would value the DeFi lending platform at $385 million, as reported by sources.
- This proposed investment follows Aave's struggles with the aftermath of the KelpDAO exploit, which resulted in considerable bad debt and billions in withdrawals, despite the integrity of its smart contracts.
- The potential acquisition aligns with Kraken's parent company Payward's strategy to diversify operations ahead of a possible IPO.
Kraken, a cryptocurrency exchange operated by Payward Inc., is currently in discussions to purchase a 15% stake in Aave, a decentralized finance (DeFi) protocol, valued at $385 million, according to three insiders.
If finalized, the deal would involve Kraken investing 35,000 ether (ETH) in exchange for 250,000 AAVE tokens, resulting in a 15% equity stake in Aave Group, as indicated in a document reviewed by CoinDesk.
Sources familiar with the matter mentioned that Kraken is also considering syndicating this deal, which is estimated at around $71 million, and spoke on the condition of anonymity due to the confidential nature of the discussions.
A third source indicated that this investment could be the first of multiple initiatives aimed at expanding Payward Asset Management, with the firm intending to take a more active role in DeFi and other investment avenues. They possess the necessary capital and have partners interested in funding these types of ventures, the person stated.
A representative from Kraken declined to provide comments, and Aave did not respond by the time of publication.
Aave is recognized as the leading decentralized lending protocol, enabling users to lend and borrow cryptocurrencies without intermediaries. Users earn yield by contributing tokens to liquidity pools, while borrowers provide crypto collateral to secure loans, with smart contracts overseeing the entire process.
The protocol was significantly impacted during one of DeFi's most notable crises in April when attackers associated with North Korea's Lazarus Group exploited KelpDAO's cross-chain bridge, minting approximately $292 million worth of unbacked rsETH.
The hackers then used these tokens as collateral on Aave and borrowed legitimate assets against them, which left the protocol with an estimated $190 million to $230 million in bad debt once the collateral became valueless.
Even though Aave's smart contracts remained intact, the incident led to over $8 billion in withdrawals as users sought to minimize their risk, underscoring the systemic risks present in DeFi's interconnected framework.
Kraken has been actively pursuing acquisitions as its parent company Payward gears up for a potential public offering, aiming to enhance its regulated trading infrastructure.
In April, Payward reached an agreement to acquire the crypto derivatives exchange Bitnomial for as much as $550 million, which will provide a comprehensive suite of U.S. CFTC licenses for brokerage, clearing, and exchange operations. This acquisition is part of Kraken's broader strategy to expand beyond spot crypto trading in preparation for a highly anticipated IPO.
CoinDesk reported in May that Payward was seeking new funding at a valuation of $20 billion, according to insider sources.
Read more: Kraken parent Payward seeks fresh funding at $20 billion valuation ahead of planned IPO
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CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
By CoinDesk ResearchJun 15, 2026In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
Why it matters:
In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.
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