Kraken's parent company has acquired Asian stablecoin firm Reap for $600 million, marking the crypto exchange's largest acquisition to date. The deal pushes Kraken deeper into cross-border payments in Asia by adding stablecoin infrastructure to its toolkit.
The $600 million deal
The acquisition of Reap, a firm that builds stablecoin-based payment rails, gives Kraken's parent company a foothold in one of the world's fastest-growing digital payment markets. The $600 million price tag makes it Kraken's biggest purchase since the exchange's founding in 2011. Neither company disclosed the exact breakdown of cash and stock in the deal, but people familiar with the matter said the transaction includes earn-out provisions tied to Reap's revenue targets.
Reap's technology allows businesses to settle cross-border transactions using stablecoins, bypassing traditional banking intermediaries that often slow down payments in Asia. The region's fragmented banking systems and high remittance volumes have made it a battleground for crypto companies looking to offer faster, cheaper alternatives.
Why stablecoins and Asia
Stablecoins—cryptocurrencies pegged to assets like the U.S. dollar—have become a popular tool for moving money across borders, especially in markets where local currencies are volatile or banking infrastructure is weak. Asia accounts for a large share of global remittance flows, with countries like the Philippines, India, and Vietnam sending billions of dollars home each year.
Kraken's parent company is betting that Reap's existing network of merchants and payment partners will let it offer cross-border payment services directly to businesses and, eventually, to retail users. The exchange already runs a stablecoin payment product in Europe, but Asia has been a tougher market to crack due to regulatory complexity and competition from local players.
Kraken's largest acquisition
The Reap deal tops Kraken's previous record, the 2021 purchase of Crypto Facilities, a derivatives trading platform, for an undisclosed sum. It also signals that Kraken's parent company is willing to spend big to diversify beyond exchange trading fees. The company has been under pressure to find new revenue streams as crypto trading volumes fluctuate and regulatory scrutiny increases in the U.S.
Reap's team will continue to operate from its headquarters in Singapore, according to a statement. The acquisition is subject to regulatory approvals in several Asian jurisdictions, including Singapore, Hong Kong, and Japan.
Details on when the acquisition will close have not been released.
