Key insights
- Payward’s Saldo Bank bid links EU crypto and crypto regulations to planned lending and cards.
- The Financial Times reported that the acquisition could close next year, subject to local approval.
- Dubai’s authorization covers retail, professional, and institutional investors ahead of the planned UAE launch.
Kraken’s parent, Payward, signed an agreement to acquire Saldo Bank, expanding its EU crypto banking ambitions. The company announced the transaction on Oct. 14, targeting lending, deposits, and payment services across Europe.
Payward expects to complete the acquisition in 2027, subject to regulatory approval. The company did not disclose the purchase price or other financial terms.
The acquisition followed Payward’s separate regulatory expansion in Dubai. Its local subsidiary received authorization to offer virtual-asset services ahead of Kraken’s planned United Arab Emirates launch.
Payward Targets Saldo Bank for EU Crypto Regulation
The Financial Times identified the purchase as a potential first for the cryptocurrency industry. If completed, it would become the first acquisition of a European bank by a crypto company. Saldo Bank operates in Lithuania and holds a banking license within the European Union.
Beyond obtaining a banking operation, the company intends to introduce financial products associated with traditional lenders. These include credit services and cards, which feature in the planned expansion. The focus also extends to the assets customers already use on the Kraken platform.
Under the proposed arrangement, Payward aims to bring cash, cryptocurrencies, tokenized stocks, and credit into one platform. The different asset types would appear within the broader Kraken offering rather than through separately described financial services.
Customer Requests Shape Payward’s Lending Plans
Meanwhile, co-chief executive Arjun Sethi described customer requests as a reason for pursuing bank-style services. He said existing users had repeatedly asked for financial products similar to those banks provide.
The company intends to respond by adding services that customers could access through Kraken.
More specifically, the planned lending product would let customers borrow while keeping their cryptocurrency assets. The structure would not require borrowers to sell their existing holdings before seeking credit.
That borrowing plan accompanies the wider goal of placing conventional financial products alongside digital assets. Payward has described lending as a service to introduce after acquiring the bank.
Additionally, the company outlined why it wants to connect services currently spread across different providers. It said bringing fragmented financial activities onto Kraken would improve convenience for customers.
The same plan also aims to increase the usefulness of assets held by those customers. These stated goals relate to the proposed platform arrangement, not to the terms of the bank purchase.
Payward Secures Dubai Approval as Wells Fargo Talks Surface
In other crypto regulation news, Payward announced full market approval from Dubai’s Virtual Assets Regulatory Authority on October 12. The authorization covers regulated virtual-asset services for retail, professional, and institutional investors.
It precedes Kraken’s planned launch in the United Arab Emirates and concerns the company’s regional operations. The UAE permission is separate from the Lithuanian acquisition, which follows its own approval process.
For the UAE rollout, the company described trading in the local dirham and options for local funding. It also outlined products and services for individual customers and institutional participants.
Meanwhile, regional partners are included through planned access to the company’s financial infrastructure.
Another banking-related development emerged earlier in October. On October 8, The Coin Republic reported discussions involving Wells Fargo and Kraken’s parent company. Those talks concerned a possible digital-asset liquidity relationship, rather than the proposed purchase of a licensed bank.
This article is for informational purposes only and does not constitute legal, financial, or investment advice.
