Payward, the parent company of crypto exchange Kraken, has signed a definitive agreement to acquire Saldo Bank, securing an EU banking license and operations across five European markets. The purchase targets Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, holds a specialized banking license from Lithuanian regulators. Financial terms were not disclosed, and the transaction is expected to close in 2027, subject to regulatory approvals.

The acquisition marks the most structural step yet in Kraken's push into regulated finance. The company now markets its app as a "primary account for everything," letting users trade stocks, bonds and other conventional assets alongside crypto.

"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, Payward's co-CEO. "We are starting in the EU, and the ambition is global."

That ambition carries a condition the press release does not resolve: two regulatory sign-offs stand between signature and closing, and neither Lithuanian nor EU authorities have publicly signaled their timetable. A 2027 close leaves a wide window for terms to change.

What does the bank actually give Payward?

Saldo Bank UAB operates as a digital-first specialized bank licensed in Lithuania, with active operations in Lithuania, Finland, Sweden and Germany, plus passporting rights into the Netherlands — five markets in total through a single license.

Saldo already runs real banking products, not just license infrastructure:

• Retail term deposits in all four operating markets
• Consumer lending in Lithuania, Finland and Sweden
• A credit card product in Finland

Payward said the completed acquisition would let a new unit, Payward Banking, offer interest on deposits, SME and consumer loans, credit cards, and banking-as-a-service tools including card issuance, SEPA payment access and embedded lending for partners.

Each of those product lines exists at Saldo today in only a subset of markets. Rolling them across the full footprint is an operational build, not a flip of a switch.

How does this fit Payward's existing footprint?

Payward says it already holds a Federal Reserve limited-purpose master account in the United States and an e-money license from the Central Bank of Ireland. The company also says it has originated more than $2 billion in loans to date — roughly the scale of a small regional lender's annual book, and a figure Payward itself supplies without external audit.

The Saldo deal sits inside a rapid sequence of institutional moves. This week, Payward announced plans to launch in the UAE after receiving full approval from Dubai's Virtual Asset Regulatory Authority.

In September, Bloomberg reported that Nasdaq Inc. was investing $100 million in Payward at a $21 billion valuation, citing people familiar with the matter. Payward and SoFi Technologies also recently agreed to route SoFi customers' crypto orders through Kraken Prime, the exchange's prime brokerage arm.

Neither the Nasdaq investment nor the SoFi routing arrangement has been confirmed in filings, so both figures rest on sourcing rather than disclosure.

What remains unresolved?

The deal's strategic logic is clear: a Lithuanian banking license converts Kraken from a crypto venue into a deposit-taking, lending institution across the eurozone, without the years-long process of applying for a license from scratch. Lithuania has become a favored jurisdiction for exactly this purpose, and Payward is buying speed rather than building it.

What Payward has not disclosed is the price, the capital injection Saldo will need to support the expanded product set, or how existing Saldo depositors and borrowers will be migrated. The press release promises global ambition; the binding facts cover five European markets and a closing date two years out.

The transaction now sits with regulators in Lithuania and the relevant EU authorities, whose approvals will determine whether Payward Banking opens in 2027 as planned or later.

By Elena Vasquez