Payward, the parent company of crypto exchange Kraken, has officially acquired Lithuania-based Saldo Bank. The move makes Payward the first digital asset entity to acquire a fully licensed bank in Europe, according to a report by the Financial Times.
The acquisition aims to expand lending and card issuance services in the European market. Saldo Bank has held an EU banking license since 2021, with a service portfolio spanning consumer loans, business financing, and term deposits. Both parties agreed not to publicly disclose the financial terms of the deal.
Uniting Cash, Crypto, and Credit
The banking acquisition serves as the foundation for Kraken’s new direction. Payward Co-CEO Arjun Sethi revealed the company’s plans to integrate cash, crypto assets, tokenized equities, and credit facilities into a single unified ecosystem.
The integration scheme is designed to allow customers to borrow funds and lend assets without selling their crypto holdings. By leveraging licensed banking infrastructure, Kraken aims to connect fiat currency transactions directly with the digital asset ecosystem on a single platform.
Venturing into conventional banking is not entirely new for the San Francisco-based firm. In May, Payward submitted an application for a national trust company charter to US federal banking regulator, the Office of the Comptroller of the Currency (OCC).
Acquisition Spree and IPO Delay
The purchase of Saldo Bank caps off a series of corporate deals by Payward in recent months. In April, the firm acquired derivatives exchange Bitnomial for $550 million. A month later, in May, Payward spent $600 million to acquire Reap Technologies, an Asia-based stablecoin payment provider.
Although the deal has been announced, the acquisition of Saldo Bank is not yet fully finalized. The transaction remains subject to regulatory approvals and is targeted for completion in 2027.
The regulatory timeline has impacted Kraken’s public listing plans. An initial public offering (IPO) that was confidentially filed in November of last year is now officially delayed, with the earliest target shifting to the second quarter of 2027.
For market participants and retail customers, Payward’s move highlights the blurring lines between crypto exchanges and traditional banks. However, with both regulatory approval and the IPO targeted for 2027, users will still need to wait at least two years to see the full rollout of these integrated services.
Reported via Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
