Crypto · · 2 min read
Editor: Bohdan S.
Kraken owner Payward to buy Lithuania’s Saldo Bank for an EU bank license
The deal would make Payward the first crypto firm to own a European bank, letting it offer deposits and loans alongside trading, a sign of how fast crypto and banking are converging.
The short answer
Payward, the parent of crypto exchange Kraken, agreed to buy Lithuania's Saldo Bank, gaining a European Union banking license. The Financial Times (FT) reported it is the first crypto company to buy a European bank. The deal, for an undisclosed price, needs regulatory approval and is expected to close in 2027.
What happened
Payward announced on Wednesday a definitive agreement to acquire Saldo Finance Oy, a Finnish holding company that owns Saldo Bank UAB, a digital lender licensed in Lithuania, Cointelegraph reported. The price was not disclosed. The Financial Times (FT) reported that Payward is buying the bank as it tries to turn into a broader financial services company. Saldo operates in Lithuania, Finland, Sweden and Germany and can also serve the Netherlands. It held 163.9 million euros of assets at the end of 2025, CoinDesk reported. Closing is expected in 2027, subject to regulators' approval.
What it means
A banking license is the prize, not the bank's size. Saldo is small, with about 164 million euros of assets. But under EU rules a license granted in one member state can be "passported" to others, so owning a licensed lender gives Payward a legal route to take deposits, pay interest, make loans and issue cards for European customers. Building that from scratch through a new application can take years.
The move fits a pattern. Kraken had been seeking a Lithuanian banking license, CoinDesk reported in July. In the US, Payward has applied for a national trust bank charter, and its banking arm already has limited access to the Federal Reserve's payment system through a limited-purpose master account. It also holds an electronic money license in Ireland and says it has originated more than $2 billion of loans. In August it launched a debit card in the US that lets customers spend both crypto and regular currency.
For crypto exchanges, the logic is to keep customers' money in one place. Trading fees swing with crypto prices, while deposits, lending and payments bring steadier income. Co-chief executive Arjun Sethi framed the bank as the missing piece that lets clients hold, move and use their assets with a single provider.
It also raises the stakes for regulators. Bank supervisors will need to approve a crypto company as the owner of a deposit-taking lender, which is new ground in Europe. How they handle the review could set the template for other exchanges that want to cross into banking.
The bull case
A licensed EU bank lets Payward offer interest-bearing deposits, loans and card services across several European markets, reducing its reliance on volatile trading fees. Owning a regulated lender could also reassure larger clients and institutions about safety and oversight. If approval goes smoothly, Payward gains a head start over rival exchanges and a steadier revenue mix ahead of any future public listing.
The bear case
Regulators may still say no or attach conditions, and the deal will not close until 2027. Running a bank brings capital rules, compliance costs and supervision far stricter than a crypto exchange faces. Saldo is tiny, so meaningful banking income will take time to build. A sharp fall in crypto markets could also make supervisors more cautious about mixing deposits with a crypto business.
Why it matters
For investors
Listed crypto platforms may face pressure to match Payward with their own banking licenses. Traditional European digital banks could also see a new competitor for deposits and payments.
The wider context
The line between crypto exchanges and banks is blurring. For savers, that could eventually mean more choice, but a bank owned by a crypto firm still needs the same scrutiny of deposit protection and fees as any other provider.
Market impact
| Asset (ticker) | Possible move | Timeframe | Why |
|---|---|---|---|
| Coinbase (COIN) | ↔ Unclear | Long term | A rival gaining a bank license raises competition in deposits and payments for crypto users. |
| Bitcoin (BTC/USD) | ↔ Unclear | Long term | Closer ties to regulated banking may ease access, but the deal is small and far off. |
The FinPrism newsroom's view of how these figures could move, as of . It is general news commentary, not a recommendation to buy, sell or hold anything.
Frequently asked questions
What bank is Kraken buying?
Kraken's parent company, Payward, agreed to buy Saldo Bank, a digital lender licensed in Lithuania, through its Finnish holding company Saldo Finance Oy. The bank operates in Lithuania, Finland, Sweden and Germany and can also serve the Netherlands. The price was not disclosed.
Why does a crypto exchange want a bank?
An EU banking license lets Payward offer interest-paying deposits, loans, card services and euro payments to European customers. That adds steadier income to a business that relies heavily on trading fees, and lets customers keep more of their money with one provider.
When will the Kraken Saldo Bank deal close?
The acquisition is expected to close in 2027 and still needs regulatory approval. The Financial Times (FT) reported that it would make Payward the first crypto company to buy a European bank, so supervisors' review is likely to be closely watched.
Sources: Financial Times, CoinDesk, Cointelegraph
How this was made: written with AI assistance from the sources listed above, following our editorial standards.
