Payward, the parent company of crypto exchange Kraken, is acquiring Saldo Bank, an EU-licensed lender based in Lithuania, according to the Financial Times. The deal is expected to close in 2027, with terms undisclosed.
Payward is the first digital asset company to purchase a bank in Europe, according to the report. Saldo received its EU banking license in 2021 and currently offers consumer and business loans as well as term deposits.
Integration Plans
Payward co-CEO Arjun Sethi said the acquisition aims to combine cash, crypto, tokenized stocks, and credit into a single system. This would allow customers to borrow and lend against their assets without selling them.
"One of the biggest things that our customers have been asking us is 'I would like to get products and services and offerings similar to what I get with another bank,'" Sethi told the Financial Times.
Regulatory Context
The acquisition follows Payward's May application for a national trust company charter from the U.S. Office of the Comptroller of the Currency. Other crypto firms including Coinbase and Ripple have received conditional approval for such charters, which allow them to hold customer assets and provide transaction services but not take deposits.
This month, the Independent Community Bankers of America sued the OCC, arguing that granting such charters to crypto firms exceeds the regulator's authority. "Any non-fiduciary firm seeking the benefits of a federal bank charter should meet the same standards as community banks," said Rebecca Romero Rainey, ICBA President and CEO.
Recent Acquisitions
The Saldo purchase follows Payward's $550 million acquisition of derivatives exchange Bitnomial in April and its $600 million purchase of Asian stablecoin payments firm Reap Technologies in May. The Saldo acquisition is subject to regulatory approvals.
