Payward Signs Agreement to Acquire Saldo Bank

Payward, the parent company of the cryptocurrency exchange Kraken, has signed a definitive agreement to acquire Finland's Saldo Finance Oy, owner of Lithuania's Saldo Bank. The deal is expected to close in 2027 following regulatory approval. The amount has not been disclosed.

According to FT, Payward becomes the first crypto company to buy a bank in Europe. Saldo Bank operates in Lithuania, Finland, Sweden, and Germany, holds a license to operate in the Netherlands, and offers consumer and business loans as well as term deposits. Saldo received its banking license from the ECB in October 2021.

The deal will expand Payward Banking: plans include interest-bearing deposits, secured and unsecured business loans, consumer lending, and payment cards. Payward will also gain banking-as-a-service infrastructure that Saldo provides to fintech partners, and access to SEPA.

Payward Co-CEO Arjun Sethi told FT that customers are asking for products similar to those offered by other banks, and the goal is to integrate cash, crypto, tokenized stocks, and credit into one system so that customers can borrow and lend against their assets without selling them.

Saldo Bank President Jarkko Mäensivu noted that a banking license is only as valuable as what you build on it, and that combining the two businesses will allow customers to receive banking services, payments, and credit from one provider.

Payward's existing banking infrastructure includes an EMI license from the Central Bank of Ireland and a limited master account at the Federal Reserve through Kraken Financial. According to the company, over $2 billion in loans have been issued through its current operations. In May, Payward applied to the OCC to establish Payward National Trust Company.

Previously, Payward acquired the derivatives exchange Bitnomial for $550 million in April and the Asian stablecoin payments provider Reap Technologies for $600 million in May. Kraken confidentially filed for an IPO in November but postponed the listing until at least the second quarter of 2027.

In the US, a lawsuit has been filed against the OCC by the Independent Community Bankers of America: the association believes that granting trust charters to crypto companies exceeds the regulator's authority. ICBA President Rebecca Romero Rainey stated that any non-fiduciary firm claiming the benefits of a federal banking charter should meet the same standards as local banks.