Deutsche Börse Dips a Toe Into Kraken Waters With $200M 'We're Definitely Into Crypto' Investment

Deutsche Börse, the operator of the Frankfurt Stock Exchange and Xetra, has acquired a 1.5% stake in Kraken's parent company Payward Inc. for $200 million. Because nothing says "we're serious about crypto" quite like owning roughly one-fiftieth of an exchange while maintaining plausible deniability about being a degen.

The transaction values the crypto exchange at $13.3 billion and is expected to close in Q2, pending regulatory approval. That's right, kids—traditional finance's biggest players are still asking permission before touching the forbidden fruit. The SEC hasn't weighed in yet, but we're sure someone's drafting a strongly worded letter as we speak.

Deutsche Börse partnered with Kraken last December to bridge traditional and digital markets and accelerate institutional crypto adoption in Europe. The collaboration covers trading, custody, settlement, collateral management, and tokenized assets. Basically, they're trying to build a bridge between the boring world of bond yields and the chaotic realm of JPEG collection. Godspeed.

"The partnership will unlock a new range of enhanced products and services that deliver frictionless access to both ecosystems for institutional clients," Deutsche Börse stated. Translation: "Please, wealthy friends, please put your money here. We promise it's not as scary as it looks. There's a custody solution and everything."

Kraken previously announced plans to go public but paused the process due to unfavorable market conditions. The exchange is still considering an IPO but only when conditions improve. Nothing says "timing the market" quite like pausing your IPO because Bitcoin dropped below the 200-week moving average. Classic.

In November, Kraken raised $800 million, including $200 million from Citadel Securities. Yes, that Citadel—the hedge fund that apparently decided crypto wasn't just a meme after all. Welcome to the future, where market makers eat both the short and the long.