Kraken parent to buy Lithuanian Saldo Bank amid TradFi expansion

Payward expects to close the acquisition in 2027, enabling it to expand its traditional banking services into four EU operating markets already served by Saldo Bank.

Cryptocurrency exchange Kraken’s parent company, Payward, will buy Lithuania-based Saldo Bank as part of its expansion into traditional financial services, calling it “a deliberate next step in an infrastructure strategy we’ve been building for years.”

Payward signed a definitive agreement to acquire Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital bank licensed in Lithuania, according to a Wednesday announcement.

Payward said Saldo Bank’s EU banking license and footprint will enable it to expand into four operating markets, including Lithuania, Finland, Sweden and Germany, where the bank already offers retail term deposits. The bank’s authorization is also passported into the Netherlands.

The acquisition is expected to close in 2027, subject to customary regulatory approvals. It would enable Payward Banking to offer traditional banking services, including interest on deposits, lending products and banking-as-a-service, such as card issuance, passporting and lending capabilities to small and medium enterprises.

“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,” said Payward co-CEO Arjun Sethi.

In August, Payward launched a multi-asset debit card in the US through Kraken’s payment app, Krak, allowing customers to spend crypto and fiat while earning up to 2% cashback in dollars or Bitcoin.

Related: Kraken parent clears Dubai’s final hurdle for dirham trading rollout

Subscribe to daily byte-sized crypto news from Cointelegraph

More on the subject

Here’s what happened in crypto today

Here’s what happened in crypto today