Payward, the parent company of cryptocurrency exchange Kraken, has signed a definitive agreement to acquire Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital bank licensed in Lithuania. The acquisition marks a strategic expansion into traditional financial services, described by Payward as a deliberate next step in its long-term infrastructure strategy.
Saldo Bank holds an EU banking license that allows it to operate in Lithuania, Finland, Sweden, and Germany, where it currently offers retail term deposits. Its authorization is also passported into the Netherlands. By integrating this regulated entity, Payward aims to enable its banking arm to provide comprehensive traditional services, including interest-bearing deposits, lending products, and banking-as-a-service solutions such as card issuance and capabilities for small and medium enterprises.
The transaction is expected to close in 2027, contingent upon customary regulatory approvals. Payward co-CEO Arjun Sethi stated that owning a regulated EU bank allows the company to serve European clients as a primary financial institution, providing a single platform to hold assets, move them freely, and utilize them effectively.
This acquisition signifies a pivotal shift in how major crypto exchanges approach market integration, moving beyond mere trading venues to become full-service financial institutions. By securing an existing EU banking license through Saldo Bank, Payward bypasses the lengthy and uncertain process of obtaining new authorizations from scratch, leveraging an established footprint in key Nordic and Central European markets. This strategy directly addresses the friction between digital asset custody and traditional fiat banking, aiming to create a seamless ecosystem where users can manage both crypto and conventional financial needs within one regulated framework.
However, the path to completion remains subject to significant regulatory scrutiny, with closing projected for 2027. The integration of a traditional bank’s compliance standards with a crypto-native firm’s operational model presents inherent risks regarding anti-money laundering protocols and capital adequacy requirements. Success will depend on Payward’s ability to harmonize these distinct regulatory cultures while maintaining the agility that defines its core business, potentially setting a precedent for other crypto firms seeking similar institutional legitimacy in Europe.
