Payward, the holding company behind the Kraken exchange, has entered into a definitive agreement to acquire Saldo Finance Oy and its subsidiary Saldo Bank UAB. The purchase provides Payward with a fully licensed digital-first bank in Lithuania and a passport to operate in Finland, Sweden, Germany and the Netherlands, extending its reach to five European jurisdictions.
Acquisition specifics
The agreement covers Saldo Finance Oy, a Finnish holding entity, and its Lithuanian-registered bank, Saldo Bank UAB. While the financial terms were not disclosed, the transaction is expected to finalize in 2027, contingent on approval from relevant regulators. Saldo Bank currently offers retail term deposits, consumer lending in three countries, and a credit-card product in Finland.
Strategic reasoning
Payward’s leadership frames the acquisition as a cornerstone for serving European users with a unified financial platform. By adding a regulated EU bank, the firm aims to give clients a single place to hold assets, move funds, and earn returns, mirroring the services of traditional banks while leveraging its crypto expertise. The move follows Kraken’s broader push into conventional finance, including stock and bond trading capabilities.
Expanded product suite
Once the deal closes, Payward intends to launch a suite of banking services under the Payward Banking brand. Planned offerings include interest-bearing deposits, small-business and consumer loans, credit-card issuance, and banking-as-a-service solutions such as SEPA payments and embedded lending for third-party partners. The company already operates a limited-purpose master account with the U.S. Federal Reserve and holds an e-money licence from the Central Bank of Ireland, having originated over $2 billion in loans to date.
Regulatory landscape and timeline
The acquisition must clear European supervisory authorities before it can be completed. Payward’s existing regulatory footprint—spanning a U.S. master account, an Irish e-money licence, and recent approval to launch in the UAE—suggests the firm is prepared to meet the compliance demands of a cross-border banking operation. The expected 2027 closing aligns with Payward’s longer-term ambition to scale globally.
Related expansion efforts
The Saldo Bank purchase arrives alongside other notable developments for Payward. Earlier this month the firm announced plans to enter the United Arab Emirates after receiving clearance from Dubai’s Virtual Asset Regulatory Authority. Additionally, a Bloomberg report indicated that Nasdaq is investing $100 million in Payward at a $21 billion valuation, and a partnership with SoFi will route the latter’s crypto orders through Kraken Prime.
Why it matters
Securing a European banking licence positions Payward to bridge crypto and traditional finance on a continent that is rapidly formalising digital-asset regulations. The expanded service menu could attract a broader user base, increase liquidity for Kraken’s platforms, and set a precedent for other crypto exchanges seeking regulated banking partnerships.
