Deutsche Börse Pokes Its Head Above the Crypto Water With $200M Kraken Stake

Deutsche Börse (DB1), the stodgy operator of the Frankfurt Stock Exchange and Xetra—yes, the same people who brought you T+2 settlement and business casual every day—has dropped a cool $200 million for a 1.5% stake in crypto exchange Kraken's parent company Payward Inc., valuing the outfit at $13.3 billion. The deal is expected to close in Q2 pending regulatory approval, because even degens need compliance sign-off these days.

The two entities first hooked up last December to bridge traditional and digital markets and accelerate institutional crypto adoption in Europe, because nothing screams "we understand crypto culture" like a joint press release. "Spanning trading, custody, settlement, collateral management, and tokenized assets, the partnership will unlock a new range of enhanced products and services that deliver frictionless access to both ecosystems...for institutional clients," Deutsche Börse noted, presumably while sipping tea and hoping nobody asks about their wire transfer times.

Kraken, which announced plans to go public last November, has reportedly paused its IPO process due to unfavorable market conditions, CoinDesk reported last month—a shocker, truly, given that 2023 was the year "conditions" became everyone's favorite scapegoat. The exchange also raised $800 million in November, including $200 million from Citadel Securities, because apparently Citadel wants to be everywhere simultaneously. An IPO remains on the table, but not until conditions improve, which in crypto can mean anything from "next quarter" to "when pigs fly."