Crypto Giant Kraken's Parent Eyes First European Bank Deal

Michael Johnson · 2026-10-15

Kraken's parent company, Payward, just made a bold move that could reshape how crypto firms operate in Europe. The company has agreed to acquire Saldo Bank, a Lithuania-based online bank. If regulators give the green light, Payward would become the first crypto-native firm to own a European bank. The deal is expected to close in 2027, and it would give Payward a strong foothold in four European markets: Lithuania, Finland, Sweden, and Germany. ### What This Means for European Clients Saldo Bank isn't just any bank. It offers credit cards in Finland, plans to launch in Sweden next year, and provides access to SEPA payments in Finland and Germany. Once acquired, Payward Banking would be able to offer European clients deposits, lending, and card issuance. That's a big deal because it means customers could hold, move, and grow their money all in one place. Arjun Sethi, Co-CEO of Payward, put it simply: "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." He added, "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 that spans 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. That means a smoother, more seamless experience for customers. "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. However, that account does not 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. ### What's Next? "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." So what does this mean for you? If you're a crypto user in Europe, this could eventually mean more integrated services from Kraken and its parent company. It's a sign that the lines between crypto and traditional finance are blurring, and that could lead to more convenient, all-in-one financial experiences. But it also means regulators will be watching closely, and the road to approval might not be smooth. We'll keep you posted as this story develops.