Payward Inc. acquires Saldo Bank marking first EU banking license for a crypto firm

This acquisition marks a significant shift in the regulatory landscape, allowing cryptocurrency firms to operate traditional banking services within the EU.

• Payward Inc. announced its acquisition of Saldo Bank, making it the first cryptocurrency company to buy a European bank.
• The deal will enable Payward to offer traditional banking services like deposits, loans, and credit cards across EU markets.
• Regulatory approvals are pending, with the transaction expected to close in 2027.

• Growing trend: Cryptocurrency firms are increasingly seeking traditional banking licenses to expand their service offerings amid evolving regulations.
• Regulatory framework: The EU's Single Supervisory Mechanism provides a pathway for crypto firms to engage in deposit-taking and lending, contrasting with stricter US regulations.
• Geopolitical factors: The EU emphasizes anti-money laundering (AML) compliance and operational resilience, making it a more favorable environment for crypto-linked entities.

On October 14, 2026, Payward Inc., the parent company of the cryptocurrency exchange Kraken, signed a definitive agreement to acquire Saldo Bank, a specialized EU-licensed bank based in Lithuania. This acquisition is groundbreaking as it positions Payward as the first cryptocurrency firm to purchase a European bank, setting a precedent for crypto-native ownership of traditional banking institutions.

The acquisition allows Payward to expand its services beyond cryptocurrency trading into traditional banking offerings, including interest-bearing deposits, consumer and SME lending, credit cards, and SEPA payments. This move is particularly significant as it aligns with the EU's regulatory framework, which is more accommodating to crypto firms compared to the restrictive banking environment in the United States.

Saldo Bank, which has been operational since receiving its ECB authorization in 2021, has a digital-first approach and operates in multiple EU countries, including Lithuania, Finland, Sweden, and Germany. The bank's assets are approximately $190 million, providing a solid foundation for Payward's expansion into the EU banking sector. The acquisition will complete Payward's licensing stack in the EU, adding full credit institution capabilities and allowing it to leverage passporting rights across member states.

However, the deal is subject to regulatory scrutiny, particularly from the European Central Bank (ECB), which will assess potential risks associated with crypto-related volatility and AML compliance. The regulatory approval process is expected to extend into 2027, during which time Payward's ambitions to integrate traditional banking services with its crypto operations will be closely monitored.

This acquisition reflects a broader trend among cryptocurrency firms seeking to legitimize their operations and offer fiat services in response to evolving regulations. As the landscape continues to shift, other crypto firms are likely to pursue similar licensing efforts in both the US and EU, indicating a growing convergence between traditional finance and the cryptocurrency sector.

• Crypto investors: Increased access to banking services may enhance investment opportunities and liquidity.
• Small and medium enterprises (SMEs): Easier access to loans and credit could stimulate growth and innovation.
• Regulators: Heightened scrutiny on crypto-related risks may lead to stricter compliance requirements across the sector.

• Regulatory approvals: Monitor the ECB's assessment of the acquisition, as it will set the tone for future crypto banking endeavors.
• Market reactions: Watch for shifts in valuations of crypto firms as they adapt to this new banking landscape.
• Licensing trends: Keep an eye on other cryptocurrency firms pursuing banking licenses in the EU and US, which could indicate a broader industry shift.