Kraken Parent Acquires Asian Stablecoin Firm Reap for $600 Million: Bloomberg

Payward Inc., the mum or dad firm of crypto trade Kraken, has agreed to accumulate Hong Kong-based stablecoin funds supplier Reap Applied sciences for $600 million, Bloomberg reported Thursday.

The transaction contains each money and inventory, with Payward issuing shares at a $20 billion valuation, in keeping with Arjun Sethi, co-CEO of Payward and Kraken. That’s the identical valuation the agency introduced when it raised $800 million in November, simply forward of submitting for an impending IPO.

Reap Applied sciences operates as a cross-border funds supplier that makes use of stablecoins to facilitate worldwide enterprise transactions. The corporate has constructed infrastructure particularly designed for Asian markets, the place demand for cryptocurrency-based fee options continues to develop.

The acquisition positions Payward to broaden its footprint past crypto buying and selling into fee companies throughout Asia. Reap’s present stablecoin infrastructure permits companies to ship cross-border funds with out conventional banking intermediaries. The deal displays broader business consolidation as exchanges search to diversify income streams past buying and selling charges.

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Crypto exchanges have more and more focused Asian markets via acquisitions and partnerships as regional demand for digital asset companies grows. Stablecoin adoption has accelerated throughout Asia for each retail remittances and company commerce funds.

The Reap deal marks Payward’s second main acquisition introduced within the final month, following its $550 million addition of derivatives trade Bitnomial. That deal was accomplished final week, Payward mentioned, with Kraken launching CFTC-regulated spot margin buying and selling on Wednesday through the licenses acquired with Bitnomial.