Key Takeaways
- • Payward, the parent company of crypto exchange Kraken, signed a definitive agreement to acquire Saldo Bank, a Lithuania-licensed digital lender, which would make it the first crypto-native firm to own a regulated bank in the European Union.
- • The deal, announced Wednesday, covers the purchase of Saldo Finance Oy, the Finnish holding company that controls Saldo Bank UAB; financial terms were not disclosed and closing is expected in 2027 subject to regulatory approval.
- • The Lithuanian licence carries passporting rights into Finland, Sweden, Germany and the Netherlands, allowing Payward to offer interest-bearing deposits, consumer and SME lending, card issuance and SEPA payments.
- • Bank of Lithuania set a 10.7% minimum total SREP capital requirement for Saldo Bank effective October 6, 2026, plus a 1.75% Pillar 2 guidance buffer, adding significant balance-sheet obligations to Payward's model.
- • Saldo Bank reported €163.9 million (approximately $182.6 million) in total assets at end-2025, up 22.7% year over year.
Summary
Payward Inc., the holding company behind Kraken, has signed a definitive agreement to acquire Saldo Bank, a Lithuania-based digital lender. According to the announcement, the transaction would make Payward the first crypto-native firm to own a regulated bank in the European Union. The acquisition is expected to close in 2027, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed. The Cheyenne, Wyoming-based company would gain a specialised banking licence in Lithuania, with passporting rights extending into Finland, Sweden, Germany and the Netherlands.
Saldo Bank currently takes retail term deposits across Lithuania, Finland, Sweden and Germany, provides consumer lending in Lithuania, Finland and Sweden, and offers SME loans in Lithuania and Finland. Its credit card is available in Finland, with a Swedish launch planned for 2027. Payward said its banking arm would be able to offer interest-bearing deposits, secured and unsecured SME lending, consumer credit, card issuance, SEPA payments access and banking-as-a-service infrastructure. Co-CEO Arjun Sethi said in a statement that "a regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should." Jarkko Mäensivu, president of Saldo Bank, said the deal would connect the lender's operations with Payward's regulated financial infrastructure.
The move extends Payward beyond crypto trading into traditional financial services. Rivals Coinbase and Ripple hold U.S. national trust charters that limit them to safeguarding funds and moving money without taking customer deposits; a European bank would let Payward run a full deposit-taking and lending balance sheet. The Lithuanian licence does not itself authorise investment services, so Kraken's crypto, securities and trading businesses will continue to depend on separate regulated entities. Saldo Bank received its specialised banking licence from the European Central Bank in October 2021, and the Bank of Lithuania is its primary regulator.
Owning a bank brings prudential requirements that differ materially from operating a crypto exchange or electronic-money institution. The Bank of Lithuania completed a Supervisory Review and Evaluation Process for Saldo Bank shortly before the announcement, setting a minimum total SREP capital requirement of 10.7%, minimum Common Equity Tier 1 of 6.02% and Tier 1 of 8.03%, effective October 6, 2026. Saldo was also recommended to hold an additional 1.75% under Pillar 2 guidance. Payward will need to manage capital, liquidity and credit risk alongside its existing businesses. Saldo had €163.9 million (approximately $182.6 million) in total assets at end-2025, up 22.7% from a year earlier.
The acquisition fits a broader build-out. Earlier this month Payward partnered with Singapore Gulf Bank on infrastructure linking fiat payments and digital assets, initially for institutional clients in Asia and the Gulf. In August it launched a multi-asset debit card in the U.S. through its Krak app. Kraken Financial, its U.S. banking arm, obtained a limited-purpose Federal Reserve master account in March 2026, and the company said its banking business has originated more than $2 billion in loans. On May 8, Payward applied to the Office of the Comptroller of the Currency to establish Payward National Trust Company. The Saldo deal also follows Nasdaq's agreement last month to invest $100 million in Payward at a reported $21 billion valuation. A Kraken spokesperson said the company hopes to expand its European banking services shortly after the deal closes, though regulatory approval remains the immediate hurdle.
Saldo Bank currently takes retail term deposits across Lithuania, Finland, Sweden and Germany, provides consumer lending in Lithuania, Finland and Sweden, and offers SME loans in Lithuania and Finland. Its credit card is available in Finland, with a Swedish launch planned for 2027. Payward said its banking arm would be able to offer interest-bearing deposits, secured and unsecured SME lending, consumer credit, card issuance, SEPA payments access and banking-as-a-service infrastructure. Co-CEO Arjun Sethi said in a statement that "a regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should." Jarkko Mäensivu, president of Saldo Bank, said the deal would connect the lender's operations with Payward's regulated financial infrastructure.
The move extends Payward beyond crypto trading into traditional financial services. Rivals Coinbase and Ripple hold U.S. national trust charters that limit them to safeguarding funds and moving money without taking customer deposits; a European bank would let Payward run a full deposit-taking and lending balance sheet. The Lithuanian licence does not itself authorise investment services, so Kraken's crypto, securities and trading businesses will continue to depend on separate regulated entities. Saldo Bank received its specialised banking licence from the European Central Bank in October 2021, and the Bank of Lithuania is its primary regulator.
Owning a bank brings prudential requirements that differ materially from operating a crypto exchange or electronic-money institution. The Bank of Lithuania completed a Supervisory Review and Evaluation Process for Saldo Bank shortly before the announcement, setting a minimum total SREP capital requirement of 10.7%, minimum Common Equity Tier 1 of 6.02% and Tier 1 of 8.03%, effective October 6, 2026. Saldo was also recommended to hold an additional 1.75% under Pillar 2 guidance. Payward will need to manage capital, liquidity and credit risk alongside its existing businesses. Saldo had €163.9 million (approximately $182.6 million) in total assets at end-2025, up 22.7% from a year earlier.
The acquisition fits a broader build-out. Earlier this month Payward partnered with Singapore Gulf Bank on infrastructure linking fiat payments and digital assets, initially for institutional clients in Asia and the Gulf. In August it launched a multi-asset debit card in the U.S. through its Krak app. Kraken Financial, its U.S. banking arm, obtained a limited-purpose Federal Reserve master account in March 2026, and the company said its banking business has originated more than $2 billion in loans. On May 8, Payward applied to the Office of the Comptroller of the Currency to establish Payward National Trust Company. The Saldo deal also follows Nasdaq's agreement last month to invest $100 million in Payward at a reported $21 billion valuation. A Kraken spokesperson said the company hopes to expand its European banking services shortly after the deal closes, though regulatory approval remains the immediate hurdle.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.