Payward, the parent company of cryptocurrency exchange Kraken, has agreed to acquire Lithuania-based Saldo Bank as part of its European expansion plans. The definitive agreement covers Saldo Finance Oy, the Finnish holding company behind Saldo Bank UAB, and would give Payward access to an EU banking license and an established financial services operation. Through the deal, the company aims to expand its deposit, lending and payment offerings across European markets. The transaction is expected to close in 2027.

An Established Bank Operating Across Five European Markets

According to a press release, Saldo Bank is a licensed specialized bank providing digital banking services to individuals and small and medium-sized enterprises (SMEs) across several European markets. Its current operations cover Lithuania, Finland, Sweden and Germany, while its passporting rights allow it to extend services into the Netherlands. In total, the bank operates across five European markets. Through the proposed acquisition, Payward would take over an established banking operation rather than building its European services entirely from scratch.

Payward confirmed the agreement in a post on X:

We've signed an agreement to acquire Saldo Bank, a licensed specialized bank in Lithuania operating across five European markets. An EU banking license meaningfully expands Payward Banking. Subject to closing conditions and regulatory approvals.

— Payward (@Payward) October 14, 2026

Adding European Banking to Existing Financial Operations

Payward has already developed regulated financial operations through existing banking arrangements and licenses in other jurisdictions. These include an electronic money institution license issued by the Central Bank of Ireland and a limited-purpose Federal Reserve master account. The company has also reported originating more than $2 billion in loans, reflecting its existing involvement in financial services beyond cryptocurrency trading. Acquiring Saldo would therefore add European banking capabilities to Payward's existing financial footprint.

For Payward, the banking license is the focal point of the deal. As the company put it in its announcement, an EU banking license "meaningfully expands Payward Banking" — and alongside its existing electronic money authorization in Ireland, it would provide a broader regulatory foundation for the company's planned European banking rollout.

Planned Banking and Lending Products Across Europe

Following completion of the acquisition, Payward plans to introduce additional banking products for European customers through Saldo Bank's established operations, subject to regulatory requirements. Proposed services include interest-bearing deposits, consumer loans, SME financing and credit cards. Saldo Bank separately plans to introduce credit cards in Sweden during 2027, extending its existing consumer banking activities.

Beyond individual customers, Payward intends to expand the financial services available to fintech companies through Saldo's banking infrastructure. Potential offerings include card issuance, embedded lending and access to Single Euro Payments Area (SEPA) payment services. These capabilities would allow Payward to support both direct banking customers and financial technology companies operating across European markets.

Closing Targeted for 2027

Payward Co-CEO Arjun Sethi described the proposed acquisition as part of the company's long-term banking expansion strategy. According to Sethi, Payward wants customers to access banking, payments and other financial services through a connected system.

Saldo Bank President Jarkko Mäensivu said combining the two companies' operations could extend their financial services to more European customers.

Payward has not provided a specific launch schedule for the additional banking products planned after acquisition. For now, both companies are working toward completing the transaction, including meeting regulatory requirements and customary closing conditions. Regulatory approval is therefore the key milestone to watch ahead of the expected close. If approved, the acquisition is expected to close in 2027, giving Payward an established banking presence across several European markets.

Source: Live Bitcoin News