CoinDesk
Payward, the parent of crypto exchange Kraken, and its asset management clients have bought an undisclosed amount of AAVE on the secondary market. The purchases were made through Payward-affiliated fund Digital Asset Special Investments I, LP, and its clients. Payward said it may make further purchases.
Why it matters
The investment gives Payward and its clients exposure to a major decentralized lending protocol as the company expands beyond trading into asset management. Aave lets users earn interest on deposited digital assets and borrow against collateral through smart contracts. AAVE holders can vote on protocol and treasury decisions.
The network has about $33 billion in net deposits and $11 billion in active loans, according to the announcement. Payward and Aave are also exploring further collaboration, though they did not specify what form it might take.
Market impact
The purchase amount and price were not disclosed, limiting any assessment of the immediate market impact. Buying on the secondary market means the tokens were purchased from market holders rather than directly from Aave.
Earlier talks reported by CoinDesk included a proposal for 250,000 AAVE tokens and a 15% common equity stake in Aave Group at a $385 million valuation. The announcement detailing the token purchases did not mention an equity stake.
Frequently asked questions
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How did Payward and its clients acquire the AAVE tokens?
The purchases were made on the secondary market through Payward-affiliated fund Digital Asset Special Investments I, LP, and its asset management clients.
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How much AAVE did Payward and its clients buy?
The amount and purchase price were not disclosed. Payward said it may make further purchases.
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Did the announced investment include an Aave Group equity stake?
The announcement detailed token purchases and did not mention an equity stake. Earlier talks included a proposed 15% common equity stake at a $385 million valuation.
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What does Aave's lending protocol do?
Aave lets users deposit digital assets to earn interest and borrow against collateral through smart contracts. AAVE holders can vote on protocol and treasury decisions.
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How large is Aave's lending network?
The network has about $33 billion in net deposits and $11 billion in active loans, according to the announcement.
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