Kraken Parent Payward Agrees to Buy European Bank Saldo

Kraken parent Payward has agreed to acquire Finnish holding company Saldo Finance Oy, which owns Lithuania-based Saldo Bank. The bank held about €163 million ($181 million) in assets at the end of 2025, including €136.9 million in retail deposits and a €113.5 million net loan portfolio. The purchase price was not disclosed, and the deal requires European regulatory approval before a targeted 2027 closing.

Why it matters

The acquisition would give Payward control of a licensed European bank with operations in Lithuania, Finland, Sweden and Germany, plus authorization to expand into the Netherlands. Saldo offers retail deposits, consumer and business lending, card services and embedded lending infrastructure. Payward plans to build on those capabilities with interest-bearing deposits, loans, card issuance and SEPA payments for European customers.

That would deepen Payward’s push beyond crypto trading and give it more direct control over financial infrastructure, potentially reducing reliance on external banking partners. The company has also pursued US payment access through Kraken Financial, holds an Irish electronic money institution license and acquired stablecoin-focused payments company Reap in July. Payward co-CEO Arjun Sethi said the strategy is about building deeper financial relationships with customers.

Market impact

Saldo’s balance sheet is modest relative to major European banks, but it brings an operating deposit and lending business rather than requiring Payward to build one from scratch. The bank reported a first annual profit of about €962,000 in 2025, after a €2.4 million loss the prior year. Its total equity was €16.3 million, with a 14.9% common equity Tier 1 ratio and a 19.8% total capital adequacy ratio.

Regulatory approval is the key hurdle. Saldo’s specialized banking license permits deposits, lending and payment services but restricts some investment activities, so the acquisition would not automatically enable every crypto or investment product inside the bank. Payward would also take on credit risk, deposit liabilities and capital requirements as it seeks to expand the business.