Payward, Kraken's Parent, Agrees to Acquire Saldo Bank for EU Banking License

Payward, the firm that owns the Kraken crypto exchange, has signed a definitive agreement to buy Saldo Bank, thereby obtaining a European Union banking license and a presence in five European markets.

Payward is purchasing Saldo Finance Oy, a Finnish holding firm. Its subsidiary Saldo Bank UAB is a specialized digital bank that holds a license in Lithuania and runs operations in Lithuania, Finland, Sweden, and Germany, with a passport to enter the Netherlands.

The financial details of the transaction were not disclosed by Payward. The deal is projected to close in 2027, pending regulatory permissions.

This development occurs as Kraken, similar to its crypto exchange peers, continues its expansion into traditional finance, enabling users to trade stocks, bonds, and other assets. The company has marketed its application as a "primary account for everything."

According to Payward co-CEO Arjun Sethi, "A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work. We are starting in the EU, and the ambition is global."

Payward stated that after the acquisition is finalized, Payward Banking should be able to provide interest on deposits, loans for SMEs and consumers, credit cards, and banking-as-a-service tools including card issuance, access to SEPA payments, and embedded lending for partners.

Saldo currently provides retail term deposits across its four operational markets, consumer loans in Lithuania, Finland, and Sweden, and a credit card in Finland.

Payward claims it already possesses a Federal Reserve limited-purpose master account in the United States, an e-money license from the Central Bank of Ireland, and has originated over $2 billion in loans.

The acquisition follows Payward's recent announcement earlier this week of intentions to launch in the United Arab Emirates after obtaining full approval from Dubai's Virtual Asset Regulatory Authority.

Bloomberg reported in September, citing sources, that Nasdaq Inc. was investing $100 million in Payward at a $21 billion valuation. Additionally, Payward and SoFi Technologies recently struck a deal to direct SoFi clients' crypto orders through Kraken Prime, the prime brokerage arm of Kraken.