Payward, the parent company of cryptocurrency exchange Kraken, has signed a definitive agreement to acquire Saldo Bank, a move that grants the firm an EU banking license and establishes a presence in five European markets. The acquisition targets Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital-first specialized bank licensed in Lithuania. This entity currently operates in Lithuania, Finland, Sweden, and Germany, with regulatory passporting rights into the Netherlands.
Financial terms of the transaction were not disclosed, though the deal is expected to close in 2027 pending necessary regulatory approvals. Payward intends to leverage this infrastructure to offer traditional banking services under the "Payward Banking" brand, including interest on deposits, small and medium enterprise (SME) loans, consumer credit, and credit cards. Additionally, the company plans to provide banking-as-a-service tools such as card issuance, SEPA payments access, and embedded lending for partners.
Saldo already provides retail term deposits across its four operating markets, consumer lending in Lithuania, Finland, and Sweden, and issues credit cards in Finland. Payward stated that it already holds a Federal Reserve limited-purpose master account in the United States and an e-money license from the Central Bank of Ireland, having originated more than $2 billion in loans prior to this acquisition. Arjun Sethi, Payward’s co-CEO, described the regulated EU bank as essential for serving European clients as a primary financial institution, noting ambitions to expand globally starting from the EU.
This acquisition marks a decisive shift in Payward's strategy from a pure-play crypto exchange to a hybrid financial institution seeking to integrate digital assets with traditional banking rails. By securing an EU banking license through Saldo, Payward bypasses the lengthy and uncertain process of applying for new charters, instantly gaining regulatory legitimacy and operational infrastructure in key European jurisdictions. This allows the company to cross-sell traditional products like loans and deposits alongside its existing crypto offerings, effectively competing with established fintech banks rather than just other exchanges.
The deal highlights the growing convergence between crypto-native firms and traditional finance, driven by the need for diversified revenue streams beyond trading fees. However, integrating a specialized bank into a crypto-centric organization introduces complex compliance challenges, particularly regarding anti-money laundering standards and capital adequacy requirements across multiple EU member states. Success will depend on Payward's ability to manage these regulatory burdens while maintaining the user experience advantages that distinguish digital-first institutions from legacy banks.
