Payward fund and clients buy undisclosed AAVE stake
Payward’s affiliated fund and asset-management clients bought an undisclosed amount of AAVE on secondary markets, with more purchases possible as the firms explore cooperation.
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Payward’s affiliated fund and its asset-management clients bought an undisclosed amount of AAVE on secondary markets on Nov. 5, as the Kraken operator and Aave explore future collaboration. Payward said in its purchase announcement that it may acquire more tokens.
Who made the purchase and how was it conducted?
The buyers were Digital Asset Special Investments I, LP, a Payward-affiliated fund, and its clients. They bought AAVE, the Aave network’s native token, through secondary-market transactions; the announcement did not identify sellers or disclose the amount acquired.
Payward said the investment gives clients exposure to decentralized finance through its asset-management business. The company and Aave are exploring possible future initiatives, but neither announcement set out specific plans or a timetable.
What does AAVE give its holders?
AAVE holders can vote on decisions affecting the network and its treasury, according to Payward. Aave is an onchain lending network where users deposit digital assets and borrow against collateral; Payward’s release reported $33 billion in net deposits and $11 billion in active loans.
Gurpreet Oberoi, Payward’s vice president for asset management and institutional business, said the purchase reflects client demand for exposure to onchain credit markets. Aave Labs chief executive Stani Kulechov said working with Payward could help bring Aave to more retail and institutional users.
Does the purchase include the earlier proposed equity stake?
No equity stake was disclosed in the Nov. 5 announcement. CoinDesk’s report on the deal says earlier talks included a proposal for 250,000 AAVE and a 15% common equity stake in Aave Group at a $385 million valuation; the current announcement only confirms token purchases.
Payward may make additional AAVE purchases, while the companies continue exploring collaboration. They have not announced further terms or a schedule.
Source material
- purchase announcement — payward.com
- report on the deal — coindesk.com