CoinDesk
Kraken is pursuing a full banking license in the European Union, with Lithuania as its target jurisdiction, according to a person familiar with the plans. If granted, the crypto exchange would be the first venue of its kind to hold such a designation, following the same regulatory path fintech major Revolut carved out in 2018 when it secured a specialized European banking license from the Bank of Lithuania.
The license, if secured, would let Kraken offer full current accounts, consumer lending, and stock trading across the European Economic Area. Other fintech firms operating under similar Lithuanian charters include Revolut Bank, Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank. Kraken declined to comment on the plans, and a spokesman for the Bank of Lithuania said the licensing process is confidential.
Why it matters
The pursuit comes as part of a broader push by Payward, Kraken's parent company, to accumulate financial licenses globally. CEO Arjun Sethi laid out the ambition at Money 2020 Europe, saying the plan for the next decade is to obtain banking licenses in each region, either by acquiring an existing regulated business or going de novo. Earlier milestones include Kraken Financial gaining access to the Federal Reserve's payment infrastructure in March 2026, the first digital asset bank to do so, and a VARA authorization in the UAE secured by Payward in May.
A full EU banking charter would give Kraken a structural moat that pure crypto exchanges cannot replicate without similar regulatory infrastructure. The license unlocks direct access to interbank payment rails, deposit insurance eligibility, and the ability to lend and custody client funds under a unified European framework.
Market impact
The move lands as the broader stablecoin sector shows signs of stress: stablecoin market cap fell to $312B in June, its largest monthly drop since the TerraUSD collapse. Tokenized equity volumes, by contrast, surged 145% to a record $3.86B.
Frequently asked questions
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Why is Kraken targeting Lithuania for a banking license?
Lithuania has already issued specialized European banking licenses to fintech firms including Revolut Bank, Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank, giving the Bank of Lithuania a track record as a regulator willing to charter non-bank financial firms.
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What would a full EU banking license let Kraken do that it can't today?
A specialized European banking license unlocks the ability to offer full current accounts, consumer lending, and stock trading across the European Economic Area, plus direct access to interbank payment rails and deposit insurance eligibility.
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Would Kraken be the first crypto exchange with a European banking license?
Yes. According to a person familiar with the plans, Kraken would be the only crypto exchange to hold such a designation if the license is granted, putting it alongside fintech firms like Revolut rather than other crypto-native venues.
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How does this fit Kraken's broader global licensing strategy?
Payward, Kraken's parent company, is pursuing a multi-region licensing push. Kraken Financial gained access to the Federal Reserve's payment infrastructure in March 2026, and Payward secured a VARA authorization in the UAE in May. CEO Arjun Sethi has said the goal is to obtain banking licenses in each region over the…
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What is happening in the broader market as Kraken pursues this license?
Stablecoin market cap fell to $312B in June, its largest monthly drop since the TerraUSD collapse, while tokenized equity volumes surged 145% to a record $3.86B, suggesting capital is rotating from dollar-pegged tokens into on-chain traditional assets.
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