Kraken Eyes Major Stake in Aave at $385M Valuation

Kraken is in talks to acquire a 15% stake in Aave at a $385 million valuation. The cryptocurrency exchange would invest around $55 million worth of Ethereum (ETH) in exchange for 250,000 AAVE tokens and a 15% common equity stake in Aave Group, the company behind the protocol.

The deal comes as Aave rebuilds from April's KelpDAO exploit, which led to billions of dollars in deposit withdrawals. For Kraken parent Payward, this investment is part of a push to diversify ahead of a potential IPO.

Aave's token has gained attention recently, with Standard Chartered turning bullish on the AAVE token. The bank initiated coverage with a price target implying nearly 50 times upside by the end of the decade, putting the token around $4,000 versus its current price of around $81.