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Kraken parent Payward to acquire EU bank in first for crypto industry

Deal for Lithuania-licensed Saldo Bank would allow crypto firm to offer deposits, loans and card services directly to European customers

By LineZotpaper
Published
Read Time2 min
Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Saldo Bank, a European Union-licensed bank, marking the first time a crypto firm has bought a regulated bank in the bloc. The deal, subject to regulatory approval and expected to close in 2027, will allow Payward to offer EU customers interest-bearing deposits, loans, card services and euro payments.

The acquisition positions Payward to expand its financial services in Europe beyond crypto trading. Saldo Bank holds licenses in Lithuania, Finland, Sweden and Germany, and has a passport to operate in the Netherlands. It currently offers deposits, consumer and business loans, and payment services.

Payward said it has already originated more than $2 billion in loans through its banking business. The firm also holds a Federal Reserve limited-purpose master account in the United States and an electronic money institution license in Ireland.

Payward co-CEO Arjun Sethi said owning a regulated EU bank will allow the firm to serve European clients the same way a bank would, according to a caption accompanying a photo in the announcement. The move signals a deepening integration of cryptocurrency firms into traditional banking infrastructure.

The deal remains subject to regulatory approval and is expected to close in 2027. No financial terms were disclosed.

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Analysis

Why This Matters

  • The acquisition represents a significant step for crypto firms moving from exchange-based services to full banking capabilities within a regulated framework.
  • EU customers could gain access to insured deposit accounts and loan products directly from a crypto company, potentially increasing adoption.
  • The deal may encourage other crypto firms to pursue bank acquisitions in Europe, particularly under the bloc's Markets in Crypto-Assets (MiCA) regulatory framework.

Background

Cryptocurrency firms have long sought to offer banking services but have faced regulatory hurdles, especially in the United States. The European Union's MiCA framework, which came into effect in phases, provides a clearer regulatory path for crypto operations. Acquiring an existing licensed bank allows Payward to bypass the lengthy process of obtaining a new banking charter while gaining an established compliance infrastructure.

Key Perspectives

Payward (Kraken parent): The company views owning a regulated EU bank as a way to offer a fuller suite of financial services to European customers, bridging crypto and traditional finance under one roof. EU financial regulators: Regulators in Lithuania and other member states will assess whether Payward meets ongoing prudential and anti-money laundering requirements. The deal could be seen as a test case for crypto ownership of banks under MiCA. Traditional banks and fintechs: Incumbents may face new competition from a crypto-native entity offering deposit accounts and loans, potentially pressuring fees and innovation.

What to Watch

  • Whether other major crypto exchanges pursue similar bank acquisitions in Europe or other jurisdictions.
  • The timeline for regulatory approvals in multiple EU countries and any conditions imposed.
  • How Payward integrates Saldo Bank's existing deposit and loan operations with its crypto exchange services.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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