Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Saldo Bank, a Lithuania-based lender with an EU banking license, marking the first time a digital asset firm purchases a bank in Europe. The Financial Times reported that the undisclosed deal is expected to close in 2027, subject to regulatory approvals. Saldo Bank, which received its license in 2021, currently offers consumer and business loans as well as term deposits.
Kraken co-CEO Arjun Sethi stated that the acquisition aims to integrate cash, crypto, tokenized stocks, and credit into a single system, allowing customers to borrow and lend against their assets without selling them. This move aligns with Payward’s broader expansion strategy, following its $550 million acquisition of derivatives exchange Bitnomial in April and its $600 million purchase of stablecoin payments firm Reap Technologies in May.
The transaction occurs amid heightened regulatory scrutiny in the United States, where the Independent Community Bankers of America recently sued the Office of the Comptroller of the Currency (OCC). The lawsuit challenges the federal regulator's authority to grant national trust company charters to crypto firms like Coinbase and Ripple. Payward itself applied for such a charter from the OCC in May. Meanwhile, Kraken has delayed its confidential IPO filing, originally submitted last November, pushing the listing to no earlier than the second quarter of 2027.
Payward’s acquisition of Saldo Bank represents a strategic pivot from relying on third-party financial infrastructure to owning regulated banking entities directly within the European Union. By securing an existing EU banking license through acquisition rather than application, Kraken bypasses lengthy regulatory hurdles while gaining immediate access to deposit-taking capabilities and traditional lending frameworks. This vertical integration allows the exchange to offer seamless credit products collateralized by digital assets, addressing a persistent demand among crypto holders for liquidity without triggering taxable events or market exposure.
However, this expansion coincides with significant legal friction in the U.S., where community bank lobbies are actively challenging the OCC’s authority to issue trust charters to crypto companies. While the Saldo deal strengthens Payward’s position in Europe, it highlights the divergent regulatory landscapes facing global crypto firms. The success of this integrated model depends heavily on navigating complex cross-border compliance requirements and managing the operational risks associated with merging traditional banking standards with high-volatility digital asset markets.
