Kraken parent Payward to become first crypto firm to buy a EU bank as it expands into deposits, lending

Crypto exchange Kraken's parent company, Payward, plans to acquire Lithuania-based Saldo Bank to bolster its traditional banking services. This move, announced on Wednesday, is part of Payward's broader strategy to expand its infrastructure in the financial sector. Payward expects to finalize the acquisition by 2027, after obtaining the necessary regulatory approvals.

The deal will grant Payward Banking the ability to offer traditional banking services, such as deposits, loans, and card issuance, to customers in four EU markets - Lithuania, Finland, Sweden, and Germany. Saldo Bank's EU banking license, which is also valid in the Netherlands due to passporting, will play a crucial role in this expansion.

Payward's co-CEO, Arjun Sethi, emphasized that a regulated EU bank will allow Payward to serve European clients more effectively, providing them with a single platform to hold assets, transfer funds, and deploy them for various purposes. The acquisition comes after Payward launched a multi-asset debit card in the US through Kraken's payment app, Krak, enabling users to spend cryptocurrencies and fiat currencies and earn up to 2% cashback in dollars or Bitcoin.