Kraken Saldo Bank Acquisition Expands Payward EU Banking Capabilities

Payward, the parent company of the Kraken cryptocurrency exchange, signed a definitive agreement on October 14, 2026, to acquire Saldo Finance Oy and its Lithuanian subsidiary Saldo Bank UAB. The transaction remains subject to regulatory approvals and is expected to close in 2027. This move marks the first instance of a crypto-native firm obtaining direct ownership of an EU banking license through acquisition.

The deal upgrades Payward's existing Irish electronic money institution license. With the specialized bank authorization held by Saldo Bank UAB, the company gains the ability to offer interest-bearing deposits, consumer and SME lending, credit cards, SEPA payments, and banking-as-a-service products across multiple EU markets via passporting rights.

Deal Structure and Saldo Bank Financial Position

Financial terms of the acquisition were not disclosed. Saldo Bank UAB received its specialized bank license from the European Central Bank on October 26, 2021, after proposal by the Bank of Lithuania. The license carries authorization code LB002115 and allows operations in Finland, Sweden, Germany, and the Netherlands, where the bank currently maintains passporting rights.

At the end of 2025, Saldo Bank reported total assets between €162.9 million and €163.9 million, reflecting 22.7 percent year-over-year growth. Retail deposits stood at approximately €136.9 million, while the net loan portfolio reached €113.5 million. The bank posted its first annual net profit of €962,000 after earlier losses and employed 86 staff members, a figure that grew above 90 by September 2026. Core products include retail term deposits across all active markets, consumer loans in Lithuania, Finland, and Sweden, SME loans in Lithuania and Finland, credit cards in Finland with expansion planned for Sweden in 2027, and embedded lending services for fintech partners in Finland and Germany.

Regulatory Path and Operational Implications

The European Central Bank will decide on the qualifying holding acquisition under the Single Supervisory Mechanism, with the Bank of Lithuania providing assessment and proposal. Review criteria include the acquirer's fitness and propriety, financial soundness, prudential compliance, and anti-money laundering risk management. Payward already maintains a limited-purpose master account with the US Federal Reserve and has originated more than $2 billion in loans through its banking activities to date.

Post-closing, existing Saldo customers and partners are expected to see no immediate changes. Integration planning focuses on expanding deposit products with interest features and broadening lending and card offerings. Co-CEO Arjun Sethi described the strategy as building capabilities license by license and market by market, beginning with the EU. The acquisition contrasts with US regulatory approaches that limit trust charters from accepting deposits.

• ECB approval timeline remains uncertain and depends on standard review duration for such transactions.
• Passporting rights already cover four countries, with potential for further expansion after closing.
• Staff count and operational footprint stayed stable through the announcement period.