German exchange giant Deutsche Börse has put up $200 million for Kraken’s parent

Deutsche Börse AG announced on Tuesday that it has committed $200 million to Kraken parent Payward Inc., a move that cements the long-standing partnership between Germany's premier exchange operator and the crypto heavyweight.

The deal gives Deutsche Börse a minority stake in the company and values ​​Kraken at roughly $13.3 billion, according to Bloomberg's valuation.

Strengthening strategic alliances

The move advances a common strategy to integrate regulated crypto markets and assets into traditional financial infrastructure.

Deutsche Börse, which operates the Frankfurt Stock Exchange and Eurex derivatives platform, will enter into a strategic partnership with Kraken by the end of 2025 to provide institutional access to trading, custody and asset ownership.

The partnership was launched as a direct integration between Kraken and 360T to strengthen FX liquidity and improve fiat on- and off-ramps through bank-level performance. It has since expanded into institutional crypto distribution through Kraken Embed, a white label for banks and fintechs across Europe and the US.

The partnership now extends to derivatives and securities, with plans to bring Eurex-listed products to Kraken, which has been granted regulatory approval.

On the tokenization front, the companies have integrated xStocks into 360X and continue to distribute securities held by Clearstream to Kraken clients.

The latest development reinforces plans to develop a unified, hybrid market system that will process both conventional securities and blockchain-native assets within a single liquidity framework, subject to regulatory approval.

Kraken has put IPO plans on hold

As crypto markets have experienced sustained weakness, Kraken has pulled out of a planned public listing and put its IPO plans on hold. The exchange filed confidentially with regulators and raised $800 million at a $20 billion valuation, backed by strong investor interest.

However, declining market conditions have changed the outlook, with Bitcoin down nearly 41 percent from its peak and trading near $74,500, amid reduced liquidity and weak demand for crypto equities.

Kraken is waiting for improved conditions.