Payward to Acquire Saldo Bank of Lithuania in Traditional Finance Push
The acquisition, set for completion in 2027, will allow Payward to deliver conventional banking products across four European Union markets where Saldo Bank currently maintains operations.
Payward, the company behind cryptocurrency exchange Kraken, has announced plans to purchase Saldo Bank, a Lithuania-headquartered financial institution, as it extends its reach into conventional banking services. The company characterized this move as "a deliberate next step in an infrastructure strategy we've been building for years."
According to a Wednesday announcement, Payward has entered into a definitive agreement for the acquisition of Saldo Finance Oy, which is a Finnish holding company that owns Saldo Bank UAB, a digitally-focused bank operating under a Lithuanian banking license.
The European Union banking license held by Saldo Bank, combined with its operational presence, will allow Payward to enter four key markets: Lithuania, Finland, Sweden and Germany, where the institution currently provides retail term deposit products to customers. Additionally, the bank maintains passporting authorization into the Netherlands.
The deal is anticipated to reach completion in 2027, pending standard regulatory approvals from relevant authorities. Upon closing, it will empower Payward Banking to deliver conventional financial services, encompassing deposit interest payments, various lending products and banking-as-a-service offerings such as card issuance capabilities, passporting rights and lending solutions targeted at small and medium enterprises.
A regulated EU bank is the piece that lets us serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work
Payward co-CEO Arjun Sethi
Earlier in August, Payward introduced a multi-asset debit card product in the US market via Krak, Kraken's payment application, which provides customers with the ability to spend both cryptocurrency and traditional fiat currency while receiving up to 2% cashback rewards in either dollars or Bitcoin.