Payward Signs Deal for Saldo Bank, Giving Kraken’s Owner a Foothold in EU Banking

Introduction

Payward, the parent company of the Kraken crypto exchange, has signed a definitive agreement to acquire Saldo Bank, a Lithuania‑licensed digital lender. The deal, announced on October 14, 2026, positions Payward to offer interest‑bearing deposits, consumer and business loans, and a suite of banking‑as‑a‑service (BaaS) tools across the European Union. Closing is expected in 2027, subject to regulator sign‑off.

What Saldo Bank Brings

Saldo Bank operates in Lithuania, Finland, Sweden and Germany, with a passport into the Netherlands. Its product suite includes:

• Term deposits for retail customers in all four markets.
• Consumer loans in Lithuania, Finland and Sweden.
• Business loans in Lithuania and Finland.
• An active Finnish credit‑card program, with a Swedish rollout slated for 2027.
• Lending‑infrastructure services for fintech partners in Finland and Germany.

These capabilities give Payward a ready‑made platform to expand beyond crypto‑centric services into traditional banking products.

Strategic Fit for Payward

The acquisition adds a full EU banking license to Payward’s growing regulatory portfolio, which already includes:

• A limited‑purpose Federal Reserve master account for Kraken’s U.S. operations.
• An electronic‑money institution (EMI) licence from the Central Bank of Ireland.
• A track record of originating more than $2 billion in loans.

Payward plans to leverage Saldo’s license to:

1. Pay interest on crypto‑linked deposits, bridging the gap between digital assets and traditional savings.
2. Expand lending – including credit‑card issuance and SEPA payment services – to both retail and business customers.
3. Offer BaaS solutions such as card‑issuance platforms and payment‑processing APIs to third‑party fintechs.

Co‑CEO Arjun Sethi emphasized that the move is part of a “license‑by‑license” strategy, starting in the EU with a global ambition.

Regulatory Hurdles and Timeline

The transaction hinges on approval from Lithuanian and broader EU regulators, as well as the satisfaction of standard closing conditions. Payward has already begun integration work and is engaging with supervisory authorities to demonstrate compliance with anti‑money‑laundering (AML) and consumer‑protection standards. If approved, the deal is slated to close in 2027, giving Payward time to align its crypto infrastructure with the newly acquired banking operations.

Practical Implications for Users

• Depositors could earn interest on balances that are backed by a fully licensed EU bank, potentially reducing the risk premium associated with crypto‑only wallets.
• Borrowers may gain access to competitive loan products, including credit‑card lines, without leaving the Kraken ecosystem.
• Fintech partners can tap into Saldo’s BaaS platform to launch their own banking services, accelerating innovation in the European market.

Conclusion

Payward’s purchase of Saldo Bank marks a significant step toward integrating crypto and traditional finance in Europe. By securing a regulated banking license, Payward aims to offer a broader suite of financial services, enhance liquidity for crypto users, and create new revenue streams through BaaS offerings. The success of the deal will depend on regulatory clearance, but the strategic rationale positions Payward—and by extension Kraken—to become a more diversified financial institution in the EU.