# Kraken’s Parent Payward Agrees to Buy Lithuanian Saldo Bank in Major EU Expansion
**Published: October 14, 2026 | HonestFred.com Crypto News**
Payward, the parent company of cryptocurrency exchange Kraken, announced on Wednesday, October 14, that it has signed a definitive agreement to acquire Saldo Bank, a digital-first bank licensed in Lithuania with a footprint across five European markets.
The deal marks the most significant move yet in Payward’s expansion from crypto trading into traditional financial services. Saldo Bank brings an EU banking license, passporting rights across five countries, and an established customer base that Payward can use to offer yield-bearing deposits, lending products, card issuance, and SEPA payments to European clients.
## Why It Matters
An EU banking license is a major upgrade for Payward. The company already holds an electronic money institution (EMI) license granted by the Central Bank of Ireland, but a full banking license opens the door to a much broader range of regulated financial products.
Saldo Bank operates in Lithuania, Finland, Sweden, and Germany, with a passport to operate in the Netherlands. It holds retail term deposits in every market, offers consumer loans in Lithuania, Finland, and Sweden, and provides SME lending in Lithuania and Finland. Its credit card is already live in Finland and is expected to launch in Sweden in 2027.
The bank also provides embedded lending infrastructure to other fintech companies in Finland and Germany, which could complement Payward’s existing banking-as-a-service capabilities.
## Payward’s Banking Strategy
The acquisition is the latest step in what Payward calls a “multi-charter” strategy aimed at offering regulated financial services across multiple jurisdictions.
Payward already operates Kraken Financial, a Wyoming-chartered special purpose depository institution (SPDI) that became the first digital-asset bank to secure a Federal Reserve master account. The company has also filed for a national trust company charter with the U.S. Office of the Comptroller of the Currency, which, if approved, would establish Payward National Trust Company for federally regulated digital-asset custody.
The Saldo Bank acquisition extends this strategy into Europe. Payward Banking has originated more than $2 billion in loans and now holds regulated infrastructure across key global markets.
## Deal Terms and Timeline
Financial terms of the transaction were not disclosed. The deal is subject to customary closing conditions, including regulatory approvals, and is expected to close in 2027.
Saldo Bank will continue to operate as an independent company and brand after the acquisition, according to Jarkko Mäensivu, CEO of Saldo Bank. At the end of September 2026, more than 90 people worked at Saldo Bank.
The bank serves over 126,000 customers across its markets: approximately 70,000 in Finland, 44,000 in Sweden, and 12,000 in Lithuania, with a small corporate customer business in Germany.
## Regulatory Context
The acquisition comes as crypto firms globally seek traditional banking licenses to expand their service offerings and attract institutional clients. In the U.S., Kraken is among several crypto companies pursuing federal charters, following approvals for Coinbase, Ripple, BitGo, Circle, and Paxos.
The European Banking Authority recently designated USDC as the first significant e-money token under the EU’s Markets in Crypto-Assets Regulation (MiCA), signaling growing regulatory clarity for digital assets in Europe.
Payward’s expansion into the EU follows its October 12 announcement that it received Full Market Approval from Dubai’s Virtual Assets Regulatory Authority (VARA), allowing Kraken to launch services in the UAE.
## What This Means for Users
Once the acquisition closes, Payward plans to integrate Saldo Bank’s infrastructure with its existing crypto services, potentially offering European customers a unified platform for both digital assets and traditional banking products. The company has indicated it will initially focus on deposit products and lending, with card issuance and banking-as-a-service capabilities to follow.
The deal does not immediately affect Kraken exchange services in Europe, but it positions Payward to compete more directly with both traditional banks and fintech companies across the EU.
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**Sources:**
– [Payward Press Release: Payward to acquire Saldo Bank](https://www.payward.com/press-release/payward-acquires-saldo-bank)
– [Invest Lithuania: Payward to Acquire Saldo Bank, Expanding Payward Banking Across Europe](https://investlithuania.com/news/payward-to-acquire-saldo-bank-expanding-payward-banking-across-europe/)
– [CoinDesk: Payward targets EU banking license with acquisition of $190M-asset Saldo Bank](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)
– [Cointelegraph: Kraken’s Parent to Buy Lithuanian Saldo Bank amid TradFi Expansion](https://cointelegraph.com/news/krakens-parent-buy-lithuanian-saldo-bank-tradfi-expansion)
– [Banking Dive: Kraken parent eyes EU license with bank acquisition](https://www.bankingdive.com/news/payward-kraken-eu-license-lithuania-bank-saldo/833019/)
– [Avance Attorneys: Saldo Bank acquired by Payward](https://www.avance.com/cases/saldo-bank-acquired-by-payward)
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