Payward, the parent company of crypto exchange Kraken, has signed a definitive agreement to acquire Saldo Bank, a deal that gives the firm an EU banking license and a footprint across five European markets.

Payward is buying Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital-first specialized bank licensed in Lithuania. The bank currently operates in Lithuania, Finland, Sweden and Germany, with a passport into the Netherlands That cross-border reach rests on passporting: under EU rules, a bank authorized in one member state can offer its services in others, which is how a Lithuanian license translates into a five-market footprint.

Payward did not disclose the financial terms of the transaction, which is expected to close in 2027, subject to regulatory approvals — the key step to watch before the bank’s license can be folded into Payward’s own operations.

The acquisition comes as Kraken, like other crypto exchanges, pushes further into the traditional finance world, allowing users to trade stocks, bonds and other assets. The company has marketed its app as a “primary account for everything.”

“A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work,” said Arjun Sethi, Payward’s co-CEO. “We are starting in the EU, and the ambition is global.”

According to Payward’s announcement, once the deal is completed it is expected to allow Payward Banking to offer interest on deposits, SME and consumer loans, credit cards, and banking-as-a-service tools such as card issuance, SEPA payments access and embedded lending for partners.

Saldo already provides retail term deposits in all four of its operating markets, consumer lending in Lithuania, Finland and Sweden, and a credit card in Finland.

The transaction builds on an existing regulatory footprint. Payward holds a Federal Reserve limited-purpose master account in the U.S. and an e-money license from the Central Bank of Ireland, and has originated more than $2 billion in loans. The banking license sits a tier above an e-money authorization: the latter covers payment services, while a licensed bank can take retail deposits directly — the foundation for the interest-bearing deposit products Payward Banking plans to offer.

The news came shortly after Payward announced this week that it plans to launch in the UAE, following full approval from Dubai’s Virtual Asset Regulatory Authority. In September, Bloomberg reported, citing people familiar with the matter, that Nasdaq Inc. was investing $100 million in Payward at a $21 billion valuation. Payward and SoFi Technologies have also recently agreed to route SoFi customers’ crypto orders through Kraken Prime, Kraken’s prime brokerage arm.

This article was first published by Bitcoin Magazine and is written by Mathew Di Salvo.