Payward-affiliated fund buys AAVE tokens on secondary market
Payward fund acquires AAVE tokens
A fund and its clients affiliated with Payward, the parent company of crypto exchange Kraken, have bought AAVE tokens. Payward announced the move on Thursday.
The purchases were made by Digital Asset Special Investments I, LP through the secondary market. That means the tokens were bought from existing holders, not directly from the Aave protocol. Payward did not disclose how many tokens were bought or the financial terms.
Payward also said it may buy more AAVE tokens in the future.
Key points
- The buyer was Digital Asset Special Investments I, LP, a Payward-affiliated fund, along with its clients.
- AAVE tokens were bought on the secondary market, with no amount or price disclosed.
- Payward described the move as reflecting long-term conviction in onchain credit markets and DeFi, where DeFi means finance services run on a blockchain without a traditional bank in the middle.
- The purchase follows founder Stani Kulechov's pushback in June against a reported deal for a 15% stake.
What Payward and Aave said in their announcements
Gurpreet Oberoi, vice president of Payward Asset Management and Institutional, said in a separate announcement from Aave that the investment reflects long-term conviction in onchain credit markets and DeFi. He also pointed to growing demand from clients for exposure to the infrastructure behind it.
Kulechov said working with Payward is a strategic step toward bringing Aave to the next wave of retail and institutional users.
Background on the earlier reported deal
In June, CoinDesk reported that Payward was in talks with Aave to purchase a 15% stake at a $385 million valuation. Kulechov pushed back on that report, saying at the time it was a roughly 70% discount from the actual value.
Kulechov did acknowledge at the time that investors had discussed potentially buying chunks of Aave Labs' AAVE allocation through partnership deals.
What AAVE tokens give holders
AAVE tokens give holders governance rights over the Aave protocol and its treasury. Governance means holders can vote on decisions about the protocol.
Under the "Aave Will Win" framework approved in April, revenue from Aave-branded products is routed into its DAO treasury. A DAO is a group that controls funds together through token-holder votes.
What is still unclear
The amount of AAVE tokens acquired and the financial terms of the purchases were not disclosed. No specific timeline was given for any further purchases, beyond Payward leaving the door open for them.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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