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

Payward, Kraken’s parent company, agreed to acquire Saldo Bank, a Lithuania-based bank, for an undisclosed amount. Saldo is already licensed in Lithuania, Finland, Sweden and Germany, and can operate in the Netherlands through a passport. The purchase would give Payward a regulated EU banking platform.

An EU banking license is official permission for a bank to provide regulated financial services. In this case, it would support deposits, loans, payment services and card offerings. The license does not automatically mean every product is available everywhere; local rules and approvals still matter.

The deal matters because Payward wants to become more than a cryptocurrency trading company. Its co-CEO said a regulated EU bank would let European customers hold assets, move money and put funds to work in one place. The acquisition remains subject to regulatory approval and is expected to close in 2027.

Saldo Bank is a relatively small bank by assets, holding 163.9 million euros, or about $180 million, at the end of 2025. Its assets rose 22.7% from the previous year. The bank provides deposits, consumer and business loans, and payment services.

Payward’s existing banking operation gives a different measure of scale. The company says that business has already originated more than $2 billion in loans. That figure describes past lending, not the amount of new activity the Saldo acquisition itself would create. The article provides no specific forecast for future deposits, loans or payments.

The potential expansion is therefore broad but unquantified. Payward could combine Saldo’s EU authorization with its crypto customer base and existing financial operations. However, the final scale will depend on regulatory approval, product rollout and customer demand. The transaction is expected to close in 2027, if approved.

Owning a regulated bank would expand Kraken’s European offering beyond cryptocurrency trading. Payward says the deal would allow EU customers to use interest-bearing bank deposits, loans, card services and euro payments. Those products could give customers more ways to hold and use money through the same broader financial platform.

The key mechanism is Saldo Bank’s existing authorization and services. Saldo offers deposits, consumer and business loans, and payment services. Payward would acquire the bank, subject to approval, rather than build every regulated banking function from scratch. Saldo is licensed in Lithuania, Finland, Sweden and Germany, with a passport to operate in the Netherlands.

This would not make the products available immediately. The acquisition is expected to close in 2027 and still needs regulatory approval. Payward already has an electronic money institution license in Ireland, but the proposed bank purchase would add a regulated EU banking platform for the planned deposit and lending expansion.

A crypto exchange mainly helps customers buy, sell or hold digital assets. Payward wants to add services that people use in ordinary banking, including deposits, loans, card services and euro payments. That could make Kraken more useful between crypto transactions and create a single place for customers to hold assets, move money and access credit.

The proposed acquisition supplies a regulated bank behind those services. Saldo Bank already offers deposits, consumer and business loans, and payment services. Payward’s co-CEO described a regulated EU bank as the piece needed to serve European clients like a primary financial institution. Payward also says its banking business has originated more than $2 billion in loans.

The move also responds to competition between crypto firms and traditional lenders. However, it is not complete yet. The acquisition is subject to regulatory approval and is expected to close in 2027. Until then, the planned products and their availability remain limited by existing permissions and the transaction’s outcome.

The article identifies the need for regulatory approval but does not name the specific authorities involved. Because Saldo Bank is based in Lithuania and operates across several European markets, approval would involve the relevant banking and transaction regulators. The exact regulatory path is not provided in the source.

Approval is important because a bank is a regulated institution, not simply a company that can be transferred between owners. Authorities review whether a proposed owner may acquire control and whether the bank can continue meeting legal and supervisory requirements. The article states that the deal remains subject to this approval.

Payward therefore cannot treat the transaction as finished yet. The expected closing date is 2027, subject to approval. Until closing, Payward does not own Saldo Bank through this deal and cannot rely on the acquisition as its new EU banking platform. The planned deposits, loans, cards and euro payments depend on that process.

Payward has alternatives to owning Saldo Bank, although the article does not map out a complete substitute. It already holds an electronic money institution license in Ireland. Such a structure could support certain payment and money-transfer services within its permitted scope. Payward could also work with licensed banks or payment providers to supply services it does not directly offer.

The company has additional banking activity in the United States. Its banking arm has secured limited access to the Federal Reserve’s payment system, and Payward has applied for a national trust bank charter. Those efforts show existing financial infrastructure, but they are not described as EU banking authorization.

Partnerships and existing licenses could therefore help Payward serve European customers without purchasing a bank. However, the source does not state that these alternatives would support interest-bearing deposits, consumer lending or all proposed card services. The planned Saldo deal is specifically intended to provide a regulated EU bank platform.

A bank accepts deposits from customers and records obligations to return those funds. It then uses part of its funding to make loans to consumers or businesses, earning interest while managing repayment, liquidity and other risks. Payments move money between accounts. Deposits and loans are therefore linked through a regulated balance sheet.

A cryptocurrency exchange has a different core job: helping customers trade digital assets. It may hold customer assets and process payments, but trading itself does not equal taking bank deposits or making traditional loans. Payward’s proposed acquisition would add Saldo Bank’s deposits, lending and payment services to its crypto platform.

The article illustrates both sides. Saldo offers deposits and consumer and business loans, while Payward says its banking business has already originated more than $2 billion in loans. The source does not explain the detailed mechanics of bank balance sheets. The key difference is the shift from crypto trading toward regulated banking activity.