Why is Payward, the parent company of Kraken, seeking a European banking licence?

Payward, the parent company of Kraken, is seeking a full European banking licence to expand its regulated financial services across the European Economic Area. The company has identified Lithuania as its preferred jurisdiction, according to a person familiar with the plans.

What would a European banking licence mean for Payward, the parent company of Kraken?

If approved, Payward, the parent company of Kraken, would become the first cryptocurrency exchange to hold a full European banking licence. The licence could allow the company to offer banking products under European regulatory rules, subject to approval.

Why is Payward, the parent company of Kraken, focusing on Lithuania?

Payward, the parent company of Kraken, is focusing on Lithuania because it is reportedly the preferred jurisdiction for its banking licence application. The Bank of Lithuania previously issued a specialised European banking licence to Revolut, although it has not commented on Kraken's reported plans.

How does the European banking licence fit into Payward's broader strategy?

Payward, the parent company of Kraken, said securing banking licences forms part of its long-term global expansion strategy. Chief executive Arjun Sethi said the company plans to obtain licences in multiple regions through acquisitions or new applications.

What other regulatory approvals has Payward, the parent company of Kraken, recently received?

Payward, the parent company of Kraken, gained access to the US Federal Reserve's payment infrastructure through Kraken Financial in March 2026. The company also received authorisation from Dubai's Virtual Assets Regulatory Authority in May 2026 as it continued expanding its regulatory footprint.

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Kraken targets Lithuania banking licence

Written by Mahathir BayenaPublished Jul 8, 2026, 12:17 AM

Kraken is pursuing a full European banking licence, with Lithuania identified as its preferred jurisdiction.
The licence would expand Kraken's regulated financial services across the European Economic Area if approved.
The move forms part of the company's broader strategy to secure banking and financial licences in multiple markets.

Payward, the parent company of Kraken, is pursuing a full banking licence in Europe with Lithuania as its preferred jurisdiction, according to a person familiar with the plans.

If approved, Kraken would become the first cryptocurrency exchange to hold a full European banking licence, following a regulatory path similar to Revolut, which obtained a specialised banking licence from the Bank of Lithuania in 2018.

“The plan for the next 10 years is to get all of these licenses, either through buying an existing business, or going de novo in each region and starting from scratch,” said Kraken chief executive Arjun Sethi.

Kraken declined to comment on the reported application, while the Bank of Lithuania said licensing processes for financial market participants are confidential, and the proposed licence would support the company's broader global licensing strategy.

Payward continues to expand its regulatory footprint across multiple jurisdictions, and following the report the Kraken share price was unavailable because the company is privately held.

In March 2026, Kraken Financial became the first digital asset bank to gain access to the US Federal Reserve's payment infrastructure, allowing it to operate on the same payment rails as traditional financial institutions.

Payward also secured authorisation from Dubai's Virtual Assets Regulatory Authority in May 2026 as it continued pursuing additional licences ahead of a potential US initial public offering.