Payward Moves into Traditional Finance with Acquisition of European Licensed Bank

Payward, the parent company behind the Kraken cryptocurrency exchange, has taken a significant step into regulated finance. The firm announced it has signed a definitive agreement to acquire Saldo Finance Oy and its subsidiary, Saldo Bank UAB—a licensed digital-first bank based in Lithuania.

The Prize: A Passporting European Banking License

At the core of this acquisition is Saldo Bank’s Lithuanian banking license, which permits operations across five European markets: Lithuania, Finland, Sweden, and Germany. Currently, the bank offers retail term deposits in these countries.

For Payward, gaining control of a fully licensed bank provides a direct gateway into the regulated financial mainstream. It enables the crypto-native company to offer a suite of traditional banking services, creating a more robust bridge between digital assets and conventional finance.

Strategic Vision: Building "Payward Banking"

Following the acquisition’s completion, Payward plans to launch "Payward Banking." The proposed services, all subject to regulatory approvals, could include:

  • Deposit and interest accounts for fiat currency.
  • Credit products for small businesses and retail consumers.
  • Payment and card solutions, including credit cards and SEPA-based payments.
  • Banking-as-a-Service (BaaS) offerings, such as embedded lending, for enterprise clients.

Payward highlighted its existing financial infrastructure, including a limited-purpose master account with the U.S. Federal Reserve and an electronic money institution license in Ireland. The company also noted it has facilitated over $2 billion in cumulative lending.

The Road Ahead: A Lengthy Integration Process

The transaction is not expected to close until 2027, underscoring the complexity of cross-border deals in heavily regulated sectors. It remains subject to customary closing conditions and necessary approvals from financial watchdogs in multiple jurisdictions.

If successful, this move would transform Payward from a crypto-focused holding company into a diversified financial group offering integrated digital and traditional banking services. It could enhance the user experience for Kraken’s clients and set a new benchmark for crypto-friendly financial services in Europe.