Payward Targets EU Banking Expansion With Saldo Deal

Payward, the parent company of cryptocurrency exchange Kraken, has signed a definitive agreement to acquire Saldo Finance Oy, a Finnish holding company whose subsidiary, Saldo Bank UAB, is a digital-first specialized bank licensed in Lithuania.

Announced on October 14, the proposed acquisition would give Payward access to an established European banking operation offering retail deposits, consumer loans, small and medium-sized enterprise (SME) financing and payment services. The transaction is expected to close in 2027, subject to regulatory approvals and customary closing conditions.

Financial terms were not disclosed.

The agreement follows Payward's earlier efforts to expand its European banking capabilities, as covered in Unlock Blockchain's report on Kraken's pursuit of a European banking license.

Saldo Bank Brings Existing Banking Operations Across Europe

Saldo Bank operates in Lithuania, Finland, Sweden and Germany, with passporting rights allowing it to extend its services into the Netherlands.

The bank offers retail term deposits across all five markets, while its consumer lending business operates in Lithuania, Finland and Sweden. SME loans are available in Lithuania and Finland.

Saldo has also launched a credit card in Finland, with expansion into Sweden expected in 2027. In addition to serving its own customers, the bank provides embedded lending infrastructure to fintech companies in Finland and Germany.

The acquisition would give Payward access to these established operations and capabilities, adding to its existing regulated financial infrastructure.

Payward Plans to Add Deposits, Lending and Payment Services

Following completion of the acquisition, Payward expects to expand Payward Banking's offerings for European customers, subject to regulatory approvals.

The planned services include interest-bearing deposits, secured and unsecured SME loans, consumer lending and credit cards. The company also highlighted banking-as-a-service capabilities, including card issuance, SME lending infrastructure and access to the Single Euro Payments Area (SEPA) payment network.

These capabilities could allow fintech businesses to integrate payment and lending services into their own products using Payward's infrastructure.

Payward Banking has originated more than $2 billion in loans and holds regulated infrastructure in the United States and Europe. This includes a limited-purpose Federal Reserve master account and an electronic money institution license issued by the Central Bank of Ireland.

The proposed acquisition would add a licensed European banking operation to that infrastructure, broadening the range of financial services Payward could offer through its platform. The move builds on the company's earlier US banking developments, including the Federal Reserve account covered by Unlock Blockchain.

Acquisition Extends Payward's Regulated Financial Services Strategy

The Saldo agreement follows Payward's efforts to expand beyond cryptocurrency trading into a broader range of financial products and regulated services.

By acquiring an existing bank, Payward would gain access to infrastructure supporting deposits and lending, alongside payment capabilities that can serve both retail customers and businesses. The deal would also extend its reach into banking services for other fintech companies.

For European customers, the proposed combination could bring cryptocurrency-related services and conventional banking products closer together within Payward's broader financial ecosystem. However, the companies have not announced a specific timetable for integrating Saldo's existing products with Payward's services.

Payward has also pursued financial-market infrastructure initiatives, including its collaboration with Nasdaq on tokenized equity infrastructure.

The Saldo transaction remains subject to regulatory approvals and other closing conditions, with completion expected in 2027. Until then, the planned expansion of Payward Banking's European services remains contingent on the acquisition closing and the necessary approvals being secured.