Kraken Pursues European Banking License as Global Regulatory Strategy Extends Beyond the UAE

Crypto exchange Kraken is pursuing a full banking license in Europe, with Lithuania emerging as its preferred jurisdiction, as reported by Coindesk, citing a person familiar with the matter. If approved, the license would allow the exchange to expand beyond crypto trading into regulated banking services across the European Economic Area (EEA), marking another step in its broader strategy to integrate digital assets with traditional financial infrastructure.

Lithuania has become an established European hub for fintech licensing, with institutions including Revolut, Mano Bank, PayRay, European Merchant Bank (EMBank), AB Fjord Bank, and Saldo Bank operating under banking or specialized banking licenses.

Following the Regulatory Path Established by Fintech Firms

Should Kraken secure the license, it would become the first major cryptocurrency exchange to operate under a full European banking license.

The approach mirrors that of Revolut, which received a specialized banking license from the Bank of Lithuania in 2018. That authorization enabled the fintech company to expand regulated banking services—including current accounts, consumer lending and investment products—across the EEA under a unified regulatory framework.

For Kraken, obtaining a banking license would extend its capabilities beyond digital asset trading and custody, potentially enabling closer integration between crypto services and traditional banking products in Europe.

Part of a Broader Global Licensing Strategy

The European banking initiative forms part of Payward's, Kraken's parent company, wider effort to secure regulated financial licenses across major jurisdictions.

Speaking at Money20/20 Europe, Kraken Co-CEO Arjun Sethi said the company's long-term objective is to obtain banking and financial licenses globally, either by acquiring existing institutions or establishing new regulated entities.

"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."

The strategy reflects a broader shift among digital asset firms seeking deeper integration with regulated financial systems rather than operating solely as crypto exchanges.

Strategy Builds on U.S. and UAE Regulatory Milestones

Kraken's European ambitions follow several regulatory milestones achieved earlier this year.

In March 2026, Kraken Financial became the first digital asset bank to gain access to the U.S. Federal Reserve's payment infrastructure through a limited-purpose master account, allowing the company to connect directly to traditional payment rails. Unlock Blockchain previously reported that the development positioned Kraken closer to conventional financial institutions while strengthening its institutional banking capabilities.

More recently,Payward secured preliminary approval from Dubai's Virtual Assets Regulatory Authority (VARA) to provide broker-dealer, investment and management services in the UAE. The authorization supports Kraken's planned expansion in Dubai, where the company intends to offer spot trading, margin trading, OTC services, staking and institutional products through a locally regulated entity.

MENA Expansion Reflects a Broader Industry Trend

Kraken's latest licensing effort also aligns with a broader trend across the Middle East, where global digital asset firms are increasingly combining regional regulatory approvals with international financial licenses.

Dubai's VARA has continued attracting exchanges, custodians and digital asset infrastructure providers through its licensing framework, reinforcing the emirate's position as a regional hub for regulated virtual asset activity. Recent approvals for firms including Rain, CoinCorner and several custody and tokenization providers illustrate how the UAE is becoming part of a wider global regulatory network rather than a standalone crypto market.

Against that backdrop, Kraken's pursuit of a European banking license complements—not replaces—its expansion strategy in the UAE. Together, the moves suggest the company is building a network of regulated entities capable of serving institutional and retail clients across multiple jurisdictions while bridging digital asset services with traditional banking infrastructure.