Kraken’s Parent Company Acquires Lithuanian Saldo Bank to Expand Traditional Financial Services
Payward, the parent company of cryptocurrency exchange Kraken, has announced its intention to acquire Saldo Bank, a Lithuanian digital bank licensed in the EU. This move aims to expand Payward’s footprint into traditional banking sectors across Europe, including the Baltic states and Germany. The acquisition is expected to close in 2027, pending regulatory approval. The integration will enable Payward to offer a wide range of banking services such as lending and banking-as-a-service to small and medium enterprises.
The Deal and Bank’s Legal Status
Payward has signed a definitive agreement to acquire Saldo Finance Oy, a Finnish holding company that owns Saldo Bank UAB, a digital bank licensed in Lithuania. With the EU banking license, Payward will be able to operate in four core markets: Lithuania, Finland, Sweden, and Germany, while also utilizing passporting rights into the Netherlands.
Strategic Importance of the Acquisition
This acquisition forms part of a deliberate infrastructure strategy Payward has been developing over several years. Company representatives highlighted that possessing a regulated EU bank allows them to serve European clients comprehensively — providing a single location for asset storage, free transfer, and access to a variety of banking products.
Planned Services and Capabilities
Upon closing the transaction, expected in 2027 subject to regulatory approvals, Payward Banking will offer traditional banking services including interest-bearing deposits, lending products, and banking-as-a-service solutions. These encompass card issuance, passporting, and lending options tailored for small and medium enterprises.
Payward’s Previous Initiatives
In August, Payward launched a multi-asset debit card in the U.S. through Kraken’s payment app Krak. This allowed customers to spend both cryptocurrencies and fiat currencies, while earning up to 2% cashback either in U.S. dollars or Bitcoin.
Why it matters
The news highlights a significant trend of cryptocurrency firms integrating into traditional financial systems. Acquiring an EU-licensed bank equips Payward, Kraken’s parent company, with the legal and operational tools to offer wide-ranging financial services beyond crypto trading. This enhances customer trust and broadens their European market presence, including services tailored to small businesses and retail customers. For the sector overall, it signals a deeper convergence of DeFi and TradFi and preparedness for regulatory environments and heightened competition with established banks.
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