Kraken’s Parent Firm to Acquire EU Bank, Expanding Into Traditional Finance

Kraken Expands Into EU Banking With Saldo Bank Acquisition

Payward, the corporate entity behind the Kraken cryptocurrency exchange, is set to become the first crypto firm to acquire a European Union bank. The company reached an agreement to purchase Saldo Bank, a Lithuanian institution holding approximately $190 million in total assets. This move signals a significant step toward integrating cryptocurrency services with traditional financial infrastructure.

The acquisition provides Payward with a full EU banking license. This license is crucial for Kraken’s plans to offer deposit and lending products to its European customer base, directly competing with established financial institutions. Currently, many crypto exchanges rely on partnerships with traditional banks to offer these services.

Saldo Bank operates under a specialized bank license, focusing on payments and currency exchange. The bank’s existing infrastructure and regulatory compliance will accelerate Kraken's expansion into offering more comprehensive financial products. Details regarding the financial terms of the acquisition were not disclosed. Regulatory approvals are still required to finalize the deal.

Kraken has been actively pursuing expansion into new markets and service offerings. This acquisition underscores a broader trend of crypto firms seeking to establish a stronger foothold within the regulated financial system. The move could pave the way for similar acquisitions by other crypto companies looking to offer mainstream financial services.

Source: CoinDesk