Kraken parent Payward to become first crypto firm to buy a EU bank as it expands into deposits, lending
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Summary
Payward, the parent company of crypto exchange Kraken, agreed to acquire Lithuania-based Saldo Bank, securing a European Union banking license. This acquisition would enable Payward to offer interest-bearing deposits, loans, card services, and euro payments to European customers. According to the Financial Times, this will make Payward the first cryptocurrency firm to buy a bank in Europe. The deal, undisclosed in price and pending regulatory approval, is expected to close in 2027.
Why it matters
Owning a regulated EU bank will allow Payward to serve European clients like a primary financial institution, providing a unified platform for asset holding, transfers, and financial services. This move signals increased competition between crypto firms and traditional lenders in the European market. The source does not elaborate further on broader market or policy impacts.
Key context
Kraken had been pursuing a banking license in Lithuania prior to this acquisition. Payward has also applied for a national trust bank charter in the U.S. and holds a limited-purpose master account with the Federal Reserve. Saldo Bank operates in multiple EU countries and offers traditional banking services, including deposits and loans.
Key numbers and entities
Payward (parent of Kraken), Saldo Bank, Lithuania, Finland, Sweden, Germany, Netherlands, Arjun Sethi (Payward co-CEO), $2 billion in loans originated by Payward’s banking business, 163.9 million euros ($180 million) in Saldo Bank’s total assets at the end of 2025.
What remains unclear
The acquisition price is not disclosed. Details on specific regulatory hurdles, the full scope of services to be offered post-acquisition, and how this will affect Payward’s positioning against other European banks are not provided.