Kraken parent’s fund and clients buy AAVE tokens on the open market

Payward announced on 5 November that an affiliated investment fund and its clients have bought AAVE tokens from existing holders. The amount was not disclosed. The announcement concerns tokens, rather than a purchase of the Aave business.

Digital Asset Special Investments I, LP is the named Payward-affiliated fund. Payward, the company behind Kraken, says further purchases are possible. That is an option described by the buyer, not a commitment to a particular quantity or timetable.

AAVE gives holders governance rights over the lending network and its treasury. Aave’s announcement also points to the Aave Will Win framework, under which Aave Labs committed revenue from Aave-branded products to the DAO treasury. Governance exposure should not be confused with shares in the company that develops software.

For readers, the significant development is an exchange group’s investment arm and clients taking exposure to a major onchain lending protocol through its existing token market. Buying from existing holders is different from providing fresh funding through a new token issuance.

Payward and Aave say they are exploring future collaboration, without specifying a launched product. Neither the undisclosed purchase nor those discussions establish a takeover, guaranteed returns or a change to the protocol’s current lending terms.