Key points:

• Kraken's parent company agrees to acquire Saldo Bank of Lithuania
• This acquisition may expand deposit and lending services in Europe.
• The $100 million investment from Nasdaq has strengthened the financial expansion of Payward.

Kraken's parent company, Payward, has agreed to acquire a European bank, marking a significant step in its business beyond cryptocurrency trading towards traditional lending, deposit, and payment services.

On October 14, the company announced that it had signed a final agreement to acquire Saldo Finance Oy – a Finnish holding company that owns Saldo Bank, which is headquartered in Lithuania. The acquisition is expected to be completed in 2027 and requires regulatory approval; the transaction amount has not been disclosed.

According to the announcement from Payward, this transaction will add a licensed European banking institution to a financial services business. Payward's existing services already cover cryptocurrency trading, custody, payments, and lending.

This move also follows closely on Nasdaq's decision to invest $100 million in Payward. This investment links Kraken's continuously expanding banking business ambitions with its expansion into tokenized stocks and traditional financial markets.

Kraken moves beyond crypto trading through acquisition of a European Union bank

Saldo Bank obtained a Lithuanian bank license in 2021 and is currently operating in Lithuania, Finland, Sweden, and Germany, with additional authorization to cover the Netherlands as well.

The bank offers time deposits in the current market, provides consumer loans in Lithuania, Finland, and Sweden, and offers corporate financing in Lithuania and Finland.

The acquisition of this institution will enable Payward to obtain banking infrastructure that allows it to directly accept deposits, issue loans, and support payment services, provided that it complies with applicable regulatory permits.

This acquisition will significantly exceed the current scope of Payward's European electronic currency institution license; the latter can support payment services, but does not have the same authorities as a bank license.

This strategy is built upon the expansion of Kraken's European equity business, allowing eligible customers to access over 7,000 U.S.-listed stocks, as well as hundreds of tokenized stocks.

Payward also plans to expand its "bank as a service" capabilities, allowing other fintech companies to access card issuance, lending infrastructure, and euro payment services.

However, the existing regulatory licenses of Saldo do not mean that Kraken customers will automatically obtain all bank products.

The $100 million investment in Nasdaq adds another layer of significance.

This acquisition took place about a month after Nasdaq announced a strategic investment of $100 million in Payward. According to reports, this investment has valued Payward at $21 billion.

The cooperation between the investors of Nasdaq in tokenized stocks and all-weather financial market infrastructure.

Their planned Nasdaq Equity Tokens framework is expected to connect regulated stock ownership with blockchain-based distribution through the xStocks ecosystem of Payward.

By combining these capabilities, it may ultimately allow customers to manage cash, cryptocurrencies, tokenized securities, and lending products within a more unified financial system.

Payward also strengthens its institutional payment network through settlement cooperation with Bank of Singapore Gulf, enabling eligible institutional customers to transfer funds around the clock.

These measures are expected to generate revenue from interest margins, payment services, and financial infrastructure, rather than relying primarily on transaction activities.

Why owning a bank would change the strategy of Kraken

Payward has issued loans totaling over $2 billion and has obtained limited access to Federal Reserve accounts through its banking operations in the United States.

Coinpaper previously reported that Kraken obtained access to the Federal Reserve's accounts, which allows it to perform certain direct payment operations, but does not grant all the privileges of traditional commercial banks.

The acquisition by Saldo will add another layer of regulatory framework, especially in Europe, where licensed banks may be able to expand their services in the market through permit arrangements.

The core issue is whether Payward can transform these infrastructures into profitable banking services while meeting capital, compliance, and customer protection requirements.

Currently, this acquisition is still merely an agreed-upon agreement, and not the completion of ownership. The expected completion date of the transaction in 2027 will determine when Payward will be able to start integrating the regulated services of Saldo Bank into its broader financial platform.