Crypto exchange Kraken’s parent company, Payward, is moving deeper into traditional banking with an agreement to acquire Saldo Bank, a Lithuania-based online bank. The deal would give Payward Banking the ability to offer European clients deposits, lending, and card issuance, making Payward the first crypto-native firm to own a European bank.
Pending regulatory approval, the acquisition is expected to close in 2027, giving Payward a foothold in four European markets where Saldo Bank operates: Lithuania, Finland, Sweden, and Germany. Saldo also offers credit cards in Finland, plans to launch in Sweden next year, and provides access to SEPA payments in Finland and Germany.
“A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work,” Arjun Sethi, Co-CEO of Payward, said in a statement. “We believe whoever owns that relationship earns the right to serve everything around it.”
Control Over the Customer Experience
Payward has been building an integrated financial infrastructure platform spanning digital asset trading, banking, payments, and institutional services. Acquiring a bank would give the company greater control over how these services are delivered, reducing its reliance on third-party banking partners.
“Adding deposits, payments and lending gives customers more reasons to keep their money on the platform, diversifies revenue beyond trading and reduces reliance on banking partners,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “Europe is attractive because an EU banking license supports expansion across member states through passporting. Saldo brings that license alongside an established banking business, making Lithuania a base for broader European growth.”
Payward’s Licensing Strategy
Payward already holds several licenses in the EU, including an electronic money institution license and authorization as a crypto asset service provider under the Markets in Crypto-Assets Regulation (MiCA), both through Ireland’s Central Bank.
In the U.S., Kraken Financial received a limited purpose Federal Reserve master account in March, giving it direct access to the payment systems used by banks and other financial institutions. The account does not, however, permit Kraken Financial to lend customers’ fiat deposits.
The Saldo deal could give Payward a broader set of banking capabilities in Europe, including lending. Other crypto exchanges may pursue different routes to expanding their financial services, depending on their licensing, regulatory, and business priorities.
“I expect more large crypto firms to pursue banking capabilities, though some will choose licenses or partnerships over acquisitions,” said Hugentobler. “Owning a bank offers greater control, but that control comes with capital, compliance and operational responsibilities.”