Featured image: A white reception desk with a wooden front panel is the main subject. AI-generated image; not a photograph of the reported event.
Payward, the parent company of crypto exchange Kraken, has agreed to acquire Lithuania-based Saldo Bank. The deal will give Payward a European Union banking license. It enables interest-bearing deposits, loans, card services, and euro payments for European customers. Source: coindesk.com.
What Happened
Payward is acquiring Saldo Bank to enter the regulated banking space. This marks the first time a crypto company has bought a European bank. The deal is still under regulatory review. It is expected to close in 2027.
Saldo Bank had 163.9 million euros in assets at the end of 2025. The growth shows strong client confidence and financial performance.
Key Facts
- Payward agreed to buy Saldo Bank for an undisclosed amount. No purchase price has been disclosed publicly.
- Saldo Bank is licensed in Lithuania, Finland, Sweden, and Germany. It can serve customers in the Netherlands through a cross-border passport.
- The acquisition lets Payward offer full banking services to European clients. These include deposits, loans, and digital payments.
- Payward has already originated over $2 billion in loans. This shows its lending capacity across markets.
- It holds a Federal Reserve limited-purpose master account and an Irish electronic money license. These support U.S. and European financial integration.
Background: How the Deal Works
Saldo Bank offers personal and business loans, deposits, and digital payment services. Its licenses span multiple EU countries. This allows Payward to reach a wide customer base.
Payward has long sought a banking license in Lithuania. It has also filed for a U.S. national trust bank charter. It has limited access to the Federal Reserve’s payment system.
Why It Matters
Payward’s move signals a major shift in digital finance. It can now offer services like asset protection and lending, like traditional banks.
Arjun Sethi, Payward’s co-CEO, said a regulated EU bank is essential. It allows European clients to hold assets, move them freely, and use them productively.
This reflects a broader trend: crypto firms are becoming full-service financial institutions. They now compete with traditional lenders in lending, deposits, and asset management.
Regulatory and Market Implications
The deal needs approval from EU and Lithuanian regulators. Critics worry about conflicts of interest. Payward promotes crypto assets, which may bias services.
Regulators will closely examine integration steps. They will ensure transparency, consumer protection, and financial stability.
If this model works, it could inspire other crypto firms. They may follow by buying banks instead of relying on partnerships or licenses.
What to Watch Next
EU and U.S. regulators will monitor this closely. The outcome could shape how crypto firms get banking licenses.
Payward’s progress may prompt traditional banks to rethink their strategies. They may need to adapt to digital competition.
For more on crypto asset growth and financial innovation, see BlackRock’s crypto ETF assets surge and bank group’s legal action over crypto trust charters.
