Kraken parent company Payward to become first crypto firm to buy a European Bank

Payward, the parent company behind crypto exchange Kraken, has unveiled plans to acquire Saldo Bank, a Lithuania-based online bank licensed within the European Union. The acquisition, expected to finalize in 2027 following regulatory clearance, would make Payward the inaugural crypto-native enterprise to own a European bank. This move would allow Payward to offer banking services to clients across Lithuania, Finland, Sweden, Germany, and potentially the Netherlands.

With Saldo’s license, Payward would be able to provide a range of banking services, including interest-earning deposits, consumer and small business loans, credit cards, and euro transfers via SEPA. The company declined to disclose the acquisition price, stating it does not disclose financial terms for its transactions. Under EU regulations, banks can extend their services to other member countries through a process known as passporting, bypassing the need for separate banking licenses in each market.

Payward's spokesperson expressed optimism about expanding shortly after the deal closes in 2027. This acquisition would enable Payward to surpass competitors like Coinbase and Ripple, whose U.S.-based charters permit them to safeguard funds and transfer money without handling customer deposits. Payward co-CEO Arjun Sethi emphasized that a regulated EU bank would allow the company to serve European clients as a primary financial institution, providing a single location for asset holding, seamless transfers, and investment opportunities.

The news follows Payward's recent establishment of a limited-purpose account with the Federal Reserve for U.S. banking operations, facilitating direct dollar payments through Fedwire. Additionally, Nasdaq recently invested $100 million in Payward, valuing the company at approximately $21 billion. The companies are jointly developing blockchain-based stock versions, targeting a launch in the second quarter of 2027, with Kraken set to act as a distribution platform.