Oct 14, 2026, 9:07 a.m. EDT
2 min read
Summary
- Payward, the parent organization of the digital asset exchange Kraken, entered into an agreement to purchase Lithuania-based Saldo Bank for a confidential sum, securing a European Union banking permit in the process.
- This transaction empowers Payward to provide European clients with yield-generating deposits, credit options, card offerings, and euro transactions as it diversifies past digital currency exchange.
- The purchase, pending regulatory green light and anticipated to finalize in 2027, positions Payward as the pioneer digital currency enterprise to acquire a European financial institution, based on the Financial Times.
Payward, the overarching company behind digital asset exchange Kraken, announced it consented to buy Lithuania-headquartered Saldo Bank for an unclosed valuation, granting it a European Union (EU) banking authorization as it scales operations past digital asset trading into conventional financial offerings.
The purchase will position Payward as the initial cryptocurrency entity to acquire a financial institution within Europe, according to a Financial Times article, as virtual currency businesses increasingly rival legacy financial institutions.
Payward declined to instantly reply to a CoinDesk inquiry for further specifics regarding the transaction cost. Saldo Bank reported 163.9 million euros ($180 million) in aggregate assets at the close of 2025, representing a 22.7% growth compared to the prior year, per data from The Banks.
Kraken previously pursued a banking authorization in Lithuania, as reported by CoinDesk last July. In the United States, Payward has sought a national trust bank charter, while its financial division obtained restricted entry to the Federal Reserve payment network.
“A regulated EU financial institution serves as the component enabling us to support European patrons the way a primary financial establishment ought to: a single location to store holdings, transfer them seamlessly, and deploy them productively,” remarked Arjun Sethi, co-chief executive officer of Payward.
The transaction empowers Payward to extend interest-earning bank balances, borrowing facilities, card solutions, and euro transaction capabilities to EU consumers.
Saldo Bank holds operating authorizations in Lithuania, Finland, Sweden, and Germany, alongside passporting privileges to function inside the Netherlands. It delivers savings facilities, retail and commercial financing, and settlement capabilities.
Payward noted that its banking division has already facilitated upwards of $2 billion in lending and maintains a restricted-purpose Federal Reserve master ledger as well as an electronic money institution permit issued in Ireland.
The transaction remains contingent on regulatory validation and is projected to conclude in 2027.
Originally published at https://www.coindesk.com/business/2026/10/14/kraken-parent-payward-to-become-first-crypto-firm-to-buy-a-eu-bank-as-it-expands-into-deposits-lending.
