Payward moves to acquire Lithuanian lender Saldo Bank as part of Kraken’s EU expansion

Payward, which owns the Kraken exchange, has entered into an agreement to acquire Saldo Bank, a Lithuanian institution holding an EU banking licence since 2021. The purchase price has not been disclosed, and the transaction is expected to finalize in 2027 pending regulatory clearance.

Strategic Rationale

Arjun Sethi, co-CEO of Payward, explained that the move addresses client demand for banking-style products tied to digital assets. By merging cash, cryptocurrencies, tokenised equities and credit facilities, the combined entity will allow customers to obtain loans or earn interest without liquidating their holdings. Saldo’s existing portfolio of consumer and business lending, as well as term-deposit services, will serve as a foundation for this integrated offering.

Recent Corporate Activity

The Saldo acquisition follows two sizeable purchases by Payward earlier in the year: a $550 million deal for derivatives platform Bitnomial in April and a $600 million transaction for Asian stable-coin payments firm Reap Technologies in May. Kraken, the exchange’s flagship brand, had filed for an IPO in late 2023, but the filing has been delayed with the earliest possible listing now projected for the second quarter of 2027.

Regulatory Context

The transaction occurs amid heightened scrutiny of crypto-related banking charters in the United States. A coalition of community banks has sued the Office of the Comptroller of the Currency, arguing that the regulator’s issuance of trust charters to crypto firms exceeds its authority. While the OCC declined comment on the Payward-Saldo deal, any cross-border acquisition will still require approval from both EU and U.S. supervisory bodies.

Why it matters

Payward’s entry into the European banking sector marks the first instance of a digital-asset company acquiring a licensed bank in the region. The acquisition could accelerate the convergence of traditional finance and crypto services, offering users seamless access to credit and investment products tied to their digital portfolios. At the same time, the deal highlights the regulatory friction that crypto firms face when seeking to expand into conventional banking, a factor that could shape future market dynamics and the timeline for Kraken’s public offering.