Kraken Parent Payward Buys EU Bank to Offer Deposits and Lending as Crypto Meets Traditional Banking

Payward agreed to acquire Lithuania's Saldo Bank for an undisclosed sum, becoming the first major crypto firm to own a full European banking license. The move enables Kraken to offer traditional deposit accounts and lending services across four EU markets.

Payward, the parent company of cryptocurrency exchange Kraken, has agreed to purchase Saldo Bank, a Lithuanian institution holding $190 million in total assets, marking the first time a leading crypto firm has acquired a full-service European Union bank. The transaction, expected to close in 2027 pending regulatory approval, will grant Kraken the ability to offer deposit accounts, lending products, and other traditional banking services across the EU.

The acquisition represents a significant strategic shift for the crypto industry, which has historically struggled to secure banking partnerships and access to the traditional financial system. By owning a licensed bank outright, Payward can bypass the debanking pressures that have forced many crypto firms offshore or into partnerships with reluctant traditional banks.

Saldo Bank currently operates in four EU markets where Kraken already has a presence, allowing the exchange to immediately integrate banking services for existing customers. The Lithuanian Electronic Money Institution license enables euro-denominated deposits protected under EU deposit insurance schemes, as well as the ability to originate loans using both fiat and potentially crypto collateral.

The deal follows a wave of crypto-traditional finance convergence, with Wells Fargo and BNY Mellon recently announcing talks with Kraken over infrastructure partnerships. However, this acquisition goes further by giving Payward direct control over the regulatory relationship and balance sheet, rather than relying on intermediaries.

Industry analysts note that owning a bank allows Kraken to capture both sides of the crypto-fiat interface: deposit fees, lending spreads, and payment processing revenue that previously flowed to traditional bank partners. It also positions the firm to compete with emerging challengers like Circle and Tether, which have begun offering yield-bearing stablecoin products backed by reserve assets.

For ordinary investors, the integration could mean seamless movement between euro bank accounts and crypto holdings within a single platform, along with access to crypto-backed loans without the need to liquidate holdings. However, it also raises questions about regulatory oversight, as EU banking supervision will now extend to a firm primarily known for volatile digital assets.

The timing coincides with the EU's Markets in Crypto-Assets regulation taking full effect, which requires stablecoin issuers and crypto service providers to meet stringent capital and consumer protection standards. Owning a bank may help Payward meet these requirements more easily than competitors still dependent on third-party banking relationships.

Payward has not disclosed the purchase price or whether Saldo Bank's existing deposit base will remain with current customers or be migrated to Kraken-branded accounts. The company said it plans to expand Saldo's operations significantly after the deal closes, suggesting ambitions beyond the bank's current $190 million asset base.