Payward, the parent company of the cryptocurrency exchange Kraken, has agreed to acquire Saldo Bank to unify cash, crypto, tokenized stocks, and loans within a single financial system. The acquisition marks the first time a digital asset firm has purchased a bank in Europe, according to the Financial Times.
Payward Pursues European Banking Integration Through Saldo Bank
Wyoming-headquartered Payward operates the Kraken exchange and has long sought to expand its business beyond cryptocurrency trading. The company is buying Saldo Bank, which secured its European banking license in 2021 and provides consumer and business loans alongside term deposits. Financial terms of the transaction were not disclosed, though the deal remains subject to approval by regulatory watchdogs and targets a closing date by the end of 2027.
The acquisition addresses a demand from users for comprehensive financial products. “Customers most often ask us for products and services similar to those they get from other banks,” said Arjun Sethi, one of the leaders of Payward, to the Financial Times. Sethi explained that tokenized shares represent only a portion of the planned ecosystem, noting the goal is to get assets like cash, crypto, tokenized stocks, and credit onto the same track.
Unifying Digital and Traditional Assets Under One System
Under the planned infrastructure, clients will be able to use their holdings as loan collateral without needing to liquidate their positions. “The improvement is that these assets are unified into one system… Cash, cryptocurrencies, tokenized shares, loans – all in one system,” Sethi told the Financial Times. Customers will be able to draw and issue loans backed directly by their holdings while continuing to hold the underlying assets.
Kraken Parent Payward to Acquire EU-Regulated Lithuanian Bank SaldoKraken’s parent company Payward has announced plans to acquire Saldo Bank, an EU-regulated bank in Lithuania, to expand into traditional banking services such as lending and card issuance, the Financial Times… pic.twitter.com/uml4Jf2OVC
This structural expansion mirrors broader industry trends among American cryptocurrency companies seeking closer alignment with traditional finance. Coinbase operates the largest U.S. crypto exchange, while Ripple develops digital asset payment systems. Both companies may hold customer assets and provide some payment services, but they may not accept standard bank deposits. Payward itself is among several cryptocurrency groups that have applied for a banking license in the United States.
Banking Sector Resistance and Regulatory Scrutiny
The push by digital asset firms into traditional banking services has triggered pushback from the banking sector. Traditional American banks argue that digital finance companies may gain access to some banking services without having to meet the same rigorous and costly rules as classical banks. Critics maintain that the same rules should apply to both groups if they offer similar services.
Regulatory frameworks continue to evolve as crypto platforms seek to expand. Coinbase and Ripple have received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC). This gives these cryptocurrency companies the authority to manage customer assets and provide transaction services, but they may not accept deposits.
Frequently Asked Questions About the Payward and Saldo Bank Deal
When is the Saldo Bank acquisition scheduled to close?
The transaction is targeted for completion by the end of 2027, pending approval from regulatory watchdogs.
What specific financial services does Saldo Bank provide in Europe?
Saldo Bank holds an EU banking license obtained in 2021, through which it provides consumer and business loans and offers term deposits.
How will the acquisition change borrowing for Kraken and Payward customers?
Customers will be able to use assets as loan collateral and hold them at the same time without needing to sell them.
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