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Kraken parent Payward buys AAVE tokens with clients

Payward and clients bought an undisclosed amount of AAVE on the open market, and the Kraken parent says it may buy more as it builds asset management.

The Tareom Editors3 min read

Kraken parent Payward buys AAVE tokens with clients

On Nov. 5, Kraken parent Payward and its clients bought an undisclosed amount of AAVE on secondary markets, extending the company’s asset-management push, according to Aave Labs’ announcement.

  • Buyer: Digital Asset Special Investments I, LP, a Payward-affiliated fund, and its clients.
  • Amount: undisclosed.
  • Method: purchases on the secondary market.
  • Aave network: $33 billion in net deposits, according to the announcement.

Who bought the tokens, and how?

The announcement names Digital Asset Special Investments I, LP, and the fund’s clients as the buyers. Payward said it may make further purchases, but gave no size, price or timing for the initial buy or any potential follow-on transactions.

Secondary-market purchases are trades in tokens already held by investors, rather than tokens bought directly from Aave. That makes this a token investment; the announcement does not describe an equity purchase or give Payward ownership in Aave Labs.

Payward presents the transaction as a joint investment for clients seeking exposure to decentralized finance, or DeFi: financial services that run on blockchain networks. The company’s vice president of asset management and institutional, Gurpreet Oberoi, said the investment reflected its conviction in onchain credit markets and client demand for exposure to that infrastructure.

What does AAVE give its holders?

AAVE is the network’s native token, and holders can vote on changes to the protocol and its treasury, Aave said. The Aave network lets people deposit digital assets, earn interest and borrow against those assets through blockchain-based contracts.

The investment gives Payward and its clients exposure to the token and its governance role. It does not mean they control the lending network. Aave says the network had $33 billion in net deposits when it announced the deal; the release describes it as the largest onchain lending network.

Payward’s announcement links the purchase to its asset-management business, which it says connects investors with opportunities across digital assets, structured yield and tokenized financial instruments. That puts the AAVE buy within a broader effort to offer investment products alongside the company’s trading and financial services.

How does this relate to earlier talks between the companies?

The token purchase comes after earlier discussions about a possible investment involving both AAVE and equity in Aave Group, according to CoinDesk’s report on the deal. CoinDesk said the earlier proposal involved 250,000 AAVE tokens and a 15% common equity stake at a $385 million valuation.

The Nov. 5 announcement does not mention an equity deal. It says only that the fund and its clients acquired AAVE on the secondary market and that Payward may buy more. CoinDesk reported that Payward and Aave are exploring future collaboration, but the companies have not specified what that work would involve.

For now, the confirmed development is a token position and a stated interest in working together. Payward has not disclosed how many tokens it or its clients hold, how much they paid, or whether further purchases or a separate partnership will follow.

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