Kraken Parent Payward to Acquire Saldo Bank, Secures Dubai License
Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Lithuania's Saldo Bank, expanding its reach in the EU banking sector. Simultaneously, Payward has obtained a full operating license in Dubai, indicating br
What happened
Payward, the parent company behind the cryptocurrency exchange Kraken, has reached an agreement to acquire Saldo Bank, a financial institution based in Lithuania. This acquisition is expected to provide Payward with an EU license, enabling it to offer services such as deposits and lending within the European Union. Saldo Bank reportedly holds approximately $190 million in total assets. The acquisition is anticipated to finalize in 2027, and it would allow Payward to expand its traditional banking services into four EU operating markets currently served by Saldo Bank.
In a separate development, Payward has also secured a full operating license in Dubai. This license allows the company to launch its services within the United Arab Emirates. The company currently holds over 100 licenses and registrations across various jurisdictions globally.
Why it matters
The acquisition of Saldo Bank signifies a strategic move by Payward to integrate traditional banking services with its existing cryptocurrency offerings within the European Union. An EU license would allow the company to directly provide deposit and lending services, potentially simplifying financial operations for its customers. A co-CEO for Kraken has indicated that customers desire a unified platform for cash, crypto, tokenized stocks, and credit, with initial plans including lending and card services. This expansion into regulated banking could broaden Kraken's ecosystem and user base by catering to a wider range of financial needs.
Simultaneously, securing a full operating license in Dubai marks Payward's official entry into the UAE market. This expands the company's global footprint and regulatory compliance, potentially opening up new avenues for growth and increasing its presence in the Middle East.
Safety notes
Investors should note that the acquisition of Saldo Bank by Payward is an agreement and is expected to close in 2027. The details of the expanded services, including specific products and launch timelines, are subject to regulatory approvals and the finalization of the acquisition. The financial implications of this acquisition and the expansion into new markets, including Dubai, will unfold over time. As with all financial services, understanding the regulatory frameworks and operational specifics in each jurisdiction is crucial.
Sources
- Kraken parent Payward to become first crypto firm to buy a EU bank as it expands into deposits, lending — CoinDesk
- Kraken parent to buy Lithuanian Saldo Bank amid TradFi expansion — Cointelegraph
- Kraken Owner Payward to Buy Lithuania's Saldo Bank in EU Push — Decrypt
- Kraken Parent Payward Wins Full Dubai License, Plans UAE Launch — Bitcoin Magazine