Payward builds AAVE position as Kraken parent deepens DeFi push

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Payward expands AAVE and DeFi strategy

Highlights

Payward and its asset management clients acquired an undisclosed amount of AAVE tokens via a company-affiliated fund, signaling closer ties with Aave.
Previous plans for Payward to buy 250,000 AAVE tokens and a 15% equity stake at a $385 million valuation were replaced by secondary-market token purchases only.
Payward's strategic DeFi expansion includes Bitnomial's acquisition for up to $550 million and stablecoin payments firm Reap for up to $600 million in July.

Token purchases expand Payward's Aave relationship

As reported by CoinDesk, citing Payward in a statement on Thursday, the Wyoming-based company and its asset management clients have acquired an undisclosed amount of AAVE tokens through Digital Asset Special Investments I, LP, a Payward-affiliated investment fund. The tokens are bought on the secondary market, and Payward says it may make additional purchases.

Payward and Aave are also exploring future collaboration opportunities, although the statement gives no details. A person familiar with the matter tells CoinDesk that buying tokens in the market, rather than directly from Aave, is a signal of alignment between the two companies and helps pave the way for closer cooperation.

The arrangement has changed since discussions first reported in June. That earlier proposal involved 250,000 AAVE tokens and a 15% common equity stake in Aave Group at a $385 million valuation, but Thursday's announcement contains no reference to an equity component.

Asset management strategy and wider crypto dealmaking

The investment supports Payward's effort to build an asset management business spanning digital assets, structured yield and tokenized investments. The company organizes its broader expansion around four pillars, trading, banking, asset management and Payward Services, which provides financial infrastructure to banks, fintechs and other platforms.

Gurpreet Oberoi, vice president of Payward asset management and institutional, says in the statement that the investment reflects long-term conviction in onchain credit markets and DeFi, alongside growing client demand for exposure to financial infrastructure built on blockchain. Aave allows users to deposit digital assets to earn interest and borrow against collateral through smart contracts, with about $33 billion in net deposits and $11 billion in active loans, according to the statement.

Aave Labs founder and CEO Stani Kulechov says in the release that working with Payward is a strategic step toward reaching a new wave of retail and institutional users. The investment comes as crypto companies pursue broader expansion into payments, derivatives and tokenized securities, with Payward having acquired U.S. derivatives exchange Bitnomial in a deal worth up to $550 million and completed its purchase of stablecoin payments company Reap in July after an agreement valued at up to $600 million.

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