Kraken Aims for Aave Stake as Binance Faces EU Service Halt

Crypto exchange Kraken is in talks to acquire a 15% stake in decentralized finance (DeFi) lending protocol Aave for $385 million, according to CoinDesk. The deal would value Aave at $2.57 billion and marks one of several initiatives by Kraken's parent company Payward to diversify its portfolio.

Aave has been rebuilding after the April KelpDAO vulnerability incident led to estimated losses of $190-$230 million in bad debt and over $8 billion in fund outflows due to associated risks. Sources indicate that this transaction is one of several efforts by Payward to expand its involvement in DeFi ahead of a potential IPO.

Binance will cease serving certain European Union customers next week due to its failure to obtain a license under the EU's Markets in Crypto-Assets (MiCA) regulation, according to the Financial Times. The exchange has already notified customers in Poland, Italy, Spain, and France to withdraw their funds.