Kraken Parent Payward to Buy European Bank for $181 Million

Payward announced a definitive agreement to acquire Saldo Finance Oy on Oct. 14. The transaction’s financial terms were not disclosed and is expected to close in 2027, subject to regulatory approval.

The acquisition would give Payward control of Saldo Bank, a specialized bank licensed in Lithuania. Saldo offers deposits, consumer and business loans, cards and payment services in Lithuania, Finland, Sweden and Germany. It is authorized to expand into the Netherlands.

Payward plans to use the bank’s infrastructure to offer European customers interest-bearing deposits, consumer and business loans, card services and SEPA payment services. The platform could also provide banking infrastructure to financial technology companies.

Saldo’s audited financial statements show that its assets rose to €162.9 million ($181 million) at the end of 2025, from €133.6 million a year earlier. Its net loan portfolio increased to €113.5 million from €95.4 million, while retail deposits grew to €136.9 million from €110.4 million.

The bank reported a profit of about €962,000 in 2025, compared with a loss of about €2.4 million in 2024. Its total equity stood at €16.3 million at the end of 2025. Saldo reported a common equity Tier 1 capital ratio of 14.9% and a total capital adequacy ratio of 19.8%.

Saldo offers retail term deposits in its operating markets, consumer lending in three countries and business loans in Lithuania and Finland. Its credit card business operates in Finland, with an expansion into Sweden planned for 2027. The bank also provides lending infrastructure that fintech companies can use to offer credit products.

Payward co-CEO Arjun Sethi described the acquisition as part of the company’s plan to build deeper financial relationships with customers. “We believe whoever owns that relationship earns the right to serve everything around it,” he said.

Payward said the acquisition would give it more control over financial infrastructure and reduce its reliance on outside banking partners. “We’re not acquiring a bank to be a bank. We’re acquiring the infrastructure to let Payward serve European clients the way a primary financial institution should: one place to hold assets, move them freely, and put them to work,” the company said.

In March, Payward’s Wyoming-chartered subsidiary, Kraken Financial, obtained a limited-purpose Federal Reserve master account, giving it direct access to U.S. payment infrastructure. Payward also holds an electronic money institution license from the Central Bank of Ireland and says its banking operations have originated more than $2 billion in loans.

In July, Payward acquired Reap, a company focused on stablecoin payments, card issuance and cross-border transaction infrastructure.

The Saldo transaction requires regulatory review of Payward’s financial position, management structure and compliance systems. Saldo’s specialized banking license allows it to accept deposits, issue loans and provide payment services, while limiting some investment activities. Ownership would not automatically allow Payward to offer every cryptocurrency or investment product through the bank.