Payward, the parent company of crypto exchange Kraken, announced on Wednesday that it has entered an agreement to acquire Saldo Bank, a Lithuania-based online bank licensed in the European Union. Once completed, the acquisition would make Payward the first crypto-native firm to own a European bank. The acquisition, expected to close in 2027 pending regulatory approval, is significant because it would pave the way for the Wyoming-based company to offer banking services across Lithuania, Finland, Sweden, and Germany, with permission to operate in the Netherlands.
Those services would include deposits that earn interest, loans for consumers and small businesses, credit cards, and euro transfers through SEPA, a system that simplifies payments across European borders. Relying on Saldo’s license, Payward would also be able to provide banking infrastructure that other fintech companies could use to offer their own services.
Kraken declined to disclose the acquisition price, noting that it does not disclose financial terms for its deals.
Under EU rules, banks can extend their services into other member countries through a process known as passporting, rather than seek a separate banking license in each market.
“Once the deal closes in 2027, we hope to expand shortly thereafter,” a Kraken spokesperson told Fortune.
The acquisition would allow Kraken to do more than peers like Coinbase and Ripple, whose national trust charters in the U.S. only allow them to safeguard funds and move money without ever touching customer deposits.
“A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work,” said Arjun Sethi, co-CEO of Payward, in a statement.
The news comes seven months after Payward’s U.S. banking arm, Kraken Financial, secured a limited-purpose account with the Federal Reserve. The arrangement lets Payward send and receive dollar payments directly through Fedwire, the Fed’s payment system, without relying on intermediary banks.
It also follows Nasdaq’s agreement last month to invest $100 million in Payward at a reported $21 billion valuation. The companies are developing blockchain-based versions of stocks, expected to launch in the second quarter of 2027, with Kraken expected to serve as a distribution platform.