Payward, the parent company of cryptocurrency exchange Kraken, signed an agreement to acquire a Finnish holding company that owns Lithuania’s Saldo Bank. The deal will give Payward access to a European Union banking license and allow it to expand financial services for European clients.
Payward announced that it signed a definitive agreement to acquire Saldo Finance Oy. Its subsidiary, Saldo Bank UAB, is a licensed specialized digital bank in Lithuania authorized to provide services in 5 European markets. The purchase price wasn’t disclosed. The transaction is expected to close in 2027, subject to regulatory approvals.
Saldo Bank has access to the European SEPA payment system and serves retail and corporate clients in Lithuania, Finland, Sweden, and Germany. It is also authorized to operate in the Netherlands. The bank offers the following services:
Deposits. Fixed-term deposits for individuals are available in Lithuania, Finland, Sweden, and Germany.
Consumer lending. Services are available in Lithuania, Finland, and Sweden.
Business lending. Secured and unsecured loans for small and medium-sized enterprises are available in Lithuania and Finland.
Credit cards. The bank already issues credit cards in Finland and plans to enter the Swedish market in 2027.
Financial services for partners. In Finland and Germany, the bank provides infrastructure that enables other FinTech companies to lend to their customers.
Following the acquisition, Payward plans to use the bank’s infrastructure to expand its financial services in Europe, including interest-bearing deposits, lending, card issuance, payments, and services for third-party financial institutions.
The transaction is part of Payward’s strategy to develop Payward Banking, its banking division focused on bringing deposit, lending, and payment services together within a unified financial infrastructure. Payward already holds a limited-purpose master account with the U.S. Federal Reserve System and an electronic money institution (EMI) license issued by the Central Bank of Ireland. Total loans issued through Payward Banking exceed $2 billion.
Arjun Sethi, Co-CEO of Payward, said the acquisition of a European bank continues the company’s long-term strategy of developing its own regulated financial infrastructure. Payward aims to create a unified platform where clients can hold and transfer funds, earn returns, and access lending products. The banking infrastructure will eventually support the development of other business areas, including digital asset trading, staking, investment management, and corporate finance.
Earlier this month, Payward announced the integration of Singapore Gulf Bank’s settlement network, enabling institutional clients to conduct cross-border settlements using digital assets 24/7.
