- Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire European digital lender Saldo Bank.
- Saldo Bank holds a specialized banking license from the European Central Bank and operates across Lithuania, Finland, Sweden, Germany, and the Netherlands.
- The acquisition is targeted to close in 2027, subject to customary regulatory approvals, positioning Payward to expand its footprint as a regulated primary financial institution.
Payward Pursues EU Banking License via Saldo Bank Acquisition
In a major strategic push to expand its footprint in traditional finance, Kraken’s parent company, Payward, is moving to acquire digital-first lender Saldo Bank. The deal provides Payward with a direct path toward securing an established European banking framework, enabling the firm to bridge digital asset infrastructure with mainstream banking services for European clients.
Addressing the strategic significance of securing banking infrastructure within the bloc, Arjun Sethi, Payward’s co-CEO, emphasized the company’s broader expansion goals in the announcement. “A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should,” Arjun Sethi, Payward’s co-CEO, said in the release. “We are starting in the EU, and the ambition is global.”
Saldo Bank’s Five-Market Footprint and Product Scope
Saldo Bank operates as a digital-first specialized banking entity licensed by the European Central Bank (ECB) and supervised by the Bank of Lithuania. The institution currently delivers regulated banking services across four core markets—Lithuania, Finland, Sweden, and Germany—while also maintaining a regulatory passport to conduct operations in the Netherlands. Its retail offering features term deposits across every active market, complemented by a tailored lending portfolio consisting of consumer loans in Lithuania, Finland, and Sweden, alongside secured and unsecured small and medium-sized enterprise (SME) financing in Lithuania and Finland.
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Beyond traditional deposit and lending services, Saldo Bank has expanded into payment cards and business-to-business integrations. The bank’s proprietary credit card is operational in Finland and is slated to roll out to consumers in Sweden in 2027. Furthermore, Saldo Bank facilitates full Single Euro Payments Area (SEPA) access and provides embedded lending solutions directly to fellow fintech firms operating in Finland and Germany.
Why This Matters
The acquisition continues an aggressive expansion phase for Payward across global financial markets. Kraken recently achieved a major regulatory milestone by securing full approval from the Virtual Assets Regulatory Authority (VARA) to introduce crypto services in the United Arab Emirates. Simultaneously, reports emerged last week that traditional banking giant Wells Fargo has engaged in discussions with Payward to source cryptocurrency trading liquidity.
Gaining an EU banking license through Saldo Bank elevates Kraken’s parent company into an exclusive tier of digital asset enterprises capable of competing directly against established commercial banks across Europe. However, realization of the deal remains contingent on formal regulatory sign-off. Payward expects the acquisition to finalize in 2027. The financial terms and purchase price have not been disclosed, and the company has not revealed its timeline for integrating Saldo Bank’s lending and deposit mechanisms into its existing digital product suite.
Frequently Asked Questions
What regulatory authorities oversee Saldo Bank?
Saldo Bank holds a specialized banking license issued by the European Central Bank and is directly regulated by the Bank of Lithuania. It is licensed to operate across Lithuania, Finland, Sweden, and Germany, alongside passporting rights in the Netherlands.
When is the acquisition expected to close?
Payward anticipates closing the acquisition of Saldo Bank in 2027, pending required regulatory approvals from European banking authorities.
What services does Saldo Bank provide to business and retail customers?
Saldo Bank offers retail term deposits across its active markets, consumer lending in Finland, Lithuania, and Sweden, as well as secured and unsecured SME loans in Lithuania and Finland. In addition, it issues credit cards in Finland (with a Swedish rollout planned for 2027) and supplies SEPA connectivity and embedded lending architecture to fintechs in Germany and Finland.
