Deutsche Börse Group acquires stake in Kraken

German international exchange organization, Deutsche Börse Group, has invested 200 million euros in Kraken, a global cryptocurrency platform. This results in a 1.5 percent fully diluted stake in the company.

US-based crypto-only platform Kraken is currently active in more than 190 countries. It has a large market share in Europe. In December last year, Deutsche Börse Group and Kraken already announced a partnership. The new investment will deepen their collaboration.

Investment of 200 million euros

The German company has invested 200 million euros into Payward, which is Kraken’s parent company. As a result, the firms want to bridge traditional financial markets and the digital asset economy. The partnership spans trading, custody, settlement, collateral management and tokenized assets.

‘This investments highlights Deutsche Börse Group’s commitment to its digital asset strategy’

Both companies will need to create new products and services, that can give frictionless access to both ecosystems. “This investment highlights Deutsche Börse Group’s commitment to its digital asset strategy, which involves the development of a comprehensive, hybrid market infrastructure. This infrastructure will be capable of processing assets of any technical form, including traditional securities and blockchain-native tokens, within a unified liquidity pool”, according to the company’s press release.

Move fits in market sentiment

The transaction is expected to close in the second quarter. The move seems to fit into a larger market sentiment. Last month, the Securities and Exchange Commission in the United States also approved the trading of tokenized securities on Nasdaq. Cryptocurrencies seem to move towards become part of regulated markets, more and more.