Payward, the parent entity of the cryptocurrency exchange Kraken, has entered into a definitive agreement to acquire Saldo Bank, thereby securing an EU banking license and establishing its presence in five European markets.
The acquisition involves Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital-first banking institution licensed in Lithuania. The bank currently operates across Lithuania, Finland, Sweden, and Germany, with the ability to serve customers in the Netherlands through its passport.
Financial terms of the transaction have not been disclosed; however, the deal is anticipated to be finalized in 2027, pending regulatory approvals.
This move reflects Kraken’s ongoing initiative to penetrate the traditional financial sector, enabling users to engage in trading activities involving stocks, bonds, and other assets. The company has promoted its application as the “primary account for everything.”
According to Arjun Sethi, Co-CEO of Payward, “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.” He further indicated that while the initial focus will be on the EU, the ultimate ambition is to expand globally.
Upon completion of the acquisition, Payward Banking is expected to provide interest on deposits, offer loans to SMEs and consumers, issue credit cards, and deliver banking-as-a-service tools, including card issuance, SEPA payments access, and embedded lending solutions for partners.
Currently, Saldo offers retail term deposits in all four of its operating markets, engages in consumer lending in Lithuania, Finland, and Sweden, and provides credit card services in Finland.
Payward already possesses a limited-purpose master account with the Federal Reserve in the U.S. and holds an e-money license from the Central Bank of Ireland, having originated over $2 billion in loans.
The announcement of this acquisition follows closely on the heels of Payward’s plans to launch operations in the UAE, subsequent to receiving full approval from Dubai’s Virtual Asset Regulatory Authority.
Furthermore, Bloomberg reported in September that Nasdaq Inc. is investing $100 million in Payward at a valuation of $21 billion, based on information from sources familiar with the developments. Additionally, Payward has entered into an agreement with SoFi Technologies to process SoFi customers’ crypto orders via Kraken Prime, Kraken’s prime brokerage division.
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