Kraken Parent Payward Acquires Saldo Bank to Launch European Banking Arm

Key points

• Payward is acquiring Saldo Bank, a Lithuania-based EU-regulated bank, to expand into traditional banking services such as lending, deposits, and card issuance.
• The acquisition, expected to close in 2027 pending regulatory approval, will allow Payward to offer services across Lithuania, Finland, Sweden, Germany, and the Netherlands via EU passporting.
• Payward’s co-CEO Arjun Sethi stated the goal is to create a unified platform where cash, crypto, and tokenized stocks can be managed together, allowing users to borrow against assets without selling them.
• The deal follows Payward’s recent $100 million investment from Nasdaq and its acquisition of a Federal Reserve limited-purpose master account in the US, signaling a broader strategy to become a comprehensive financial infrastructure provider.
• The acquisition contrasts with US crypto firms like Coinbase and Ripple, which have received national trust bank charters that allow them to hold assets but not take deposits, highlighting different regulatory approaches in the US and EU.

Background

In September 2026, Payward secured a limited-purpose account with the Federal Reserve, allowing it to process dollar payments directly through Fedwire. This followed a $100 million investment from Nasdaq at a reported $21 billion valuation, with plans to launch blockchain-based stocks in Q2 2027. The move occurs amid ongoing debates in the US regarding crypto banking charters, where traditional banks have lobbied against lighter regulations for crypto firms. The Senate recently faced a pivotal vote on the Clarity Act, a digital asset bill, reflecting the growing tension between crypto advocates and traditional banking interests.

How outlets are covering it

The Financial Times emphasizes the strategic shift of crypto firms toward becoming broader financial services companies, noting that Payward’s acquisition of Saldo Bank is the first of its kind in Europe. PYMNTS highlights the technical and regulatory infrastructure behind the deal, including Payward’s existing EMI license and Federal Reserve account, and frames the acquisition as part of a larger 'money layer' strategy. Fortune focuses on the competitive advantage Payward gains over US peers like Coinbase and Ripple, whose US charters do not allow them to take deposits. All three outlets agree that the deal signals a convergence of crypto and traditional banking, but they differ in emphasis: FT on the broader industry trend, PYMNTS on the technical integration, and Fortune on the competitive landscape and regulatory differences between the US and EU.

Why it matters

The acquisition marks a significant step in the integration of crypto and traditional banking, potentially reshaping the financial landscape in Europe. It could set a precedent for other crypto firms seeking to expand into traditional banking services, while also raising questions about regulatory consistency and competition between crypto and traditional banks. The deal may influence how financial services are structured in the EU, with implications for consumer access to integrated financial products and the future of banking regulation in the digital age.

What to watch

The acquisition is expected to close in 2027, pending regulatory approvals. Following the deal, Payward plans to expand its services across the EU, leveraging Saldo’s passporting rights to offer banking, payments, and lending in multiple countries. The company may also explore further integrations with its existing infrastructure, including its Federal Reserve account and Nasdaq partnership, to enhance its platform. Regulatory bodies in the EU and US will likely monitor the deal closely, potentially influencing future policies on crypto banking and financial services.