Payward, the parent company of crypto exchange Kraken, is set to acquire Saldo Bank, a Lithuania-based lender licensed across the European Union. The deal, expected to close in the first quarter of 2027, would make Payward the first digital assets firm to buy a bank in Europe, according to the Financial Times.
🔑 Key Takeaways
- Payward (Kraken’s parent) is acquiring Saldo Bank, a Lithuanian lender licensed in the EU since 2021.
- Deal value undisclosed; closing targeted for Q1 2027 subject to regulatory approvals.
- Goal: merge fiat liquidity, crypto, tokenized stocks and credit into a single platform.
- Global license push continues: Fed access (March 2026), VARA approval (May 2026), OCC trust charter (pending).
- Payward already absorbed Bitnomial ($550M) and Reap Technologies ($600M) in the first half of 2026.
A landmark deal for Europe’s crypto industry
According to a Financial Times report dated July 9, 2025, Payward has signed a definitive agreement to acquire Saldo Bank, a Lithuanian-licensed bank holding a European banking passport. The transaction, whose value has not been disclosed, still requires the green light from Lithuanian and European supervisors before a projected closing in the first quarter of 2027.
Saldo Bank, founded in 2007 and rebranded under its current name, obtained its pan-European banking license in 2021. The institution offers personal and business loans as well as term deposits. Its integration would allow Payward to leverage a regulated infrastructure to distribute its services across all 27 EU member states, without having to negotiate country-by-country licenses.
“One of the most important things our customers ask us is: I would like to get products and services similar to what I have at another bank.”
Arjun Sethi, co-CEO of Payward
The vision of a crypto-native financial super-app
Speaking to the Financial Times, Arjun Sethi, co-CEO of Payward, outlined the strategy behind the deal. The idea is to merge, within a single system, fiat liquidity (traditional currencies), cryptocurrencies, tokenized stocks (financial securities represented as blockchain tokens) and credit products. Customers would then be able to borrow or lend against their digital assets without having to sell them on the market.
A one-stop shop for digital finance
The model resembles that of European neobanks (fully digital banks without physical branches), but enriched with a crypto-native layer. By combining Saldo’s banking license with Kraken’s existing services (trading, staking, custody), Payward aims to become a single entry point for European users, whether they hold euros, bitcoin or stablecoins (tokens pegged to a stable asset such as a fiat currency).
This approach mirrors a broader trend among major industry players. Coinbase already offers a crypto-linked debit card in the European Economic Area, while Robinhood and Revolut are expanding their digital asset offerings. Payward, however, is betting on a distinctive edge: a genuine banking license, not just an e-money institution status.
A coordinated global regulatory roadmap
The Lithuanian deal is part of a coordinated push to secure banking licenses across multiple continents, as Payward seeks to consolidate its position in an increasingly regulated crypto landscape.
| Date | Regulator | Jurisdiction | Type of License | Status |
|---|---|---|---|---|
| 2021 | ECB / LCB | Lithuania / EU | Banking license (Saldo Bank) | Acquired, takeover pending |
| March 2026 | Federal Reserve | United States | Direct access to payment rails | Granted |
| May 2026 | VARA | UAE | Virtual assets | Granted |
| May 2026 | OCC | United States | National trust charter | Under review |
| Q1 2027 | LCB / ECB | Lithuania / EU | Saldo license transfer | Pending |
Clashes with traditional banking
In the United States, Kraken’s May filing for a national trust charter with the OCC (Office of the Comptroller of the Currency, the federal banking regulator) has not gone unnoticed. Coinbase and Ripple have already secured conditional approvals. These charters allow firms to hold client assets and operate transaction services, but not to accept deposits.
The ICBA (Independent Community Bankers of America), which represents US community banks, filed suit against the OCC earlier this month, arguing that granting such charters exceeds the regulator’s authority.
“Any non-bank company seeking the benefits of a federal bank charter should be held to the same standards as community banks.”
Rebecca Romero Rainey, CEO of the ICBA
A sustained acquisition strategy and a delayed IPO
The Saldo Bank takeover is not an isolated move. Payward has completed two other major transactions since the start of 2026, underscoring a clear ambition to build a digital financial services conglomerate.
- April 2026: acquisition of Bitnomial, a US-based CFTC-regulated (Commodity Futures Trading Commission) crypto derivatives platform, for $550 million.
- May 2026: closing of the Reap Technologies deal, a Singapore-based fintech specializing in stablecoin payments, for $600 million.
IPO delayed but still on the table
On the public markets side, Kraken confidentially filed for an IPO (initial public offering) in the United States last November. According to sources familiar with the matter cited by CoinDesk, the listing has been pushed back and is not expected before the second quarter of 2027 at the earliest. If approved, the Saldo Bank acquisition could strengthen the company’s pitch to investors by demonstrating its regulatory depth.
Conclusion: convergence between crypto and traditional finance accelerates
Payward’s acquisition of Saldo Bank goes beyond a routine growth deal. It marks a turning point in how major crypto firms position themselves toward regulators: no longer as outsiders seeking to be integrated, but as full-fledged contenders for financial institution status. If approved, Kraken will hold a first-mover advantage in the European Union at a time when MiCA (Markets in Crypto-Assets, the EU’s comprehensive crypto regulatory framework) is imposing high standards on all market participants.
The coming months will reveal whether the Lithuanian regulator, the US OCC and the ECB give their green light. Three scenarios are emerging: a swift approval that accelerates Payward’s pan-European strategy; a deeper review that delays closing beyond 2027; or a refusal that pushes Kraken toward other jurisdictions, such as Malta or Ireland. In any case, the signal sent to the market is unmistakable: the boundary between traditional banking and crypto platforms is thinning.
Sources
- Decrypt — Kraken Owner Payward to Buy Lithuania’s Saldo Bank in EU Push
- Bloomberg Law — Crypto firm Kraken plots bank purchase to expand Europe presence
- CoinMarketCap Academy — Kraken parent Payward Lithuania banking license
- The Paypers — Kraken to pursue European banking licence via Lithuania
- Unchained Crypto — Kraken pursues a full banking license in Europe with Lithuania
- Yahoo Finance — Kraken owner Payward to buy Lithuania’s Saldo Bank
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
