Payward, the parent company of crypto exchange Kraken, has signed a definitive agreement to acquire Saldo Finance Oy, the Finnish holding company that owns Lithuania-licensed Saldo Bank.

If the transaction is approved and completed, Payward would gain a full European Union banking license alongside its existing Irish e-money license, broadening the services it could offer across several European markets.

What the acquisition would bring

The proposed purchase would upgrade Payward from its current electronic money institution setup in Ireland to ownership of a regulated bank within the EU. That shift would allow the group to move beyond its present license framework and add activities tied to a full credit institution license.

According to the source report, the deal would enable Payward Banking to offer interest on deposits, lending products and banking-as-a-service to European clients, subject to regulatory approvals. The banking-as-a-service offering would include card issuance and lending for small and medium-sized businesses.

Saldo Bank’s footprint in Europe

Saldo Bank UAB is described as a digital-first specialized bank licensed by the European Central Bank and supervised by the Bank of Lithuania. Its owner, Saldo Finance Oy, is the entity Payward has agreed to acquire.

The bank serves customers in Lithuania, Finland, Sweden and Germany, and also holds a passport that allows it to operate in the Netherlands. The source article says the acquisition would allow Payward to lend and provide deposit-related services across five European markets through that existing structure.

Part of a wider regulated expansion

The transaction fits into a broader pattern for Payward this year as it builds out regulated infrastructure in both Europe and the United States. The reported aim is to expand its operational and licensing capabilities beyond the Irish e-money license it already holds from the Central Bank of Ireland.

For a crypto-native group, obtaining access to a fully licensed bank would mark a notable step in deepening its role in mainstream financial services, though the scope of any new offerings would still depend on supervisory approval.

Regulatory review remains the key hurdle

The acquisition is not yet complete. A change of control at Saldo still requires approval from the Bank of Lithuania and the European Central Bank.

The source notes that supervisors are likely to examine closely the transfer of a deposit-taking bank to a crypto-native owner. That means the next confirmed step is the regulatory review process, which will determine whether Payward can complete the takeover and use Saldo’s license for a wider European banking push.

Source: www.blockhead.co