Kraken moves to acquire $181 million European bank in major push beyond crypto trading

Kraken's parent company, Payward, has agreed to acquire a European bank as it expands beyond cryptocurrency trading into traditional financial services.

On Oct. 14, the company announced a definitive agreement to purchase Saldo Finance Oy, a Finnish holding company that owns Lithuania-based Saldo Bank.

The acquisition would give Payward control of a licensed European banking institution with approximately €163 million ($181 million) in assets, offering deposits, lending and payment services across multiple markets.

The transaction, whose financial terms were not disclosed, is expected to close in 2027, subject to regulatory approval.

It marks another step in Payward's effort to build a financial services platform that can handle traditional money and digital assets while reducing its dependence on external banking partners.

Saldo Bank is an established but relatively small European financial institution whose operations have expanded considerably in recent years.

According to its 2025 audited financial statements, the bank held €162.9 million in assets at the end of December, up about 22% from €133.6 million a year earlier.

Its net loan portfolio increased to €113.5 million from €95.4 million, while retail deposits climbed 24% to €136.9 million.

The bank also reported its first annual profit of approximately €962,000 in 2025, reversing a €2.4 million loss the previous year. Its operating profit before impairment losses rose to €10.4 million, though credit impairment charges absorbed most of it.

These figures show that Payward is acquiring an operating lending business with an established deposit base, although its balance sheet remains modest compared with major European financial institutions.

More importantly, Saldo's existing infrastructure provides a foundation for expanding Payward's financial products across Europe without establishing a new banking operation from scratch.

The institution currently operates in Lithuania, Finland, Sweden, and Germany, and is authorized to expand into the Netherlands. It provides retail term deposits across its operating markets, consumer lending in three countries, and business loans in Lithuania and Finland.

Its credit card business is already operating in Finland, with a Swedish expansion planned for 2027. Saldo also provides embedded lending services that allow fintech companies to offer credit products through its infrastructure.

Payward plans to build on these capabilities by introducing interest-bearing deposits, business and consumer lending, card issuance, and SEPA payment services for European customers.