Kraken Parent Payward Agrees to Buy Finnish Saldo Bank Owner

Payward, the parent company of Kraken, agreed Wednesday to acquire Finnish holding company Saldo Finance Oy, a deal that would expand its banking business in Europe if regulators approve it.

The agreement covers Saldo Finance’s subsidiary, Saldo Bank UAB, which holds a specialized banking license in Lithuania. Payward expects the transaction to close in 2027, pending regulatory approvals and customary closing conditions.

The planned product range includes interest-bearing accounts, lending for consumers and small businesses, credit cards and banking support for fintech companies. Its planned expansion also includes card issuance and access to the Single Euro Payments Area (SEPA), a network for euro payments.

Saldo Bank operates in Lithuania, Finland, Sweden and Germany, with passporting rights for the Netherlands. It offers term deposits in those four markets, consumer loans in Lithuania, Finland and Sweden, small-business loans in Lithuania and Finland, and credit cards in Finland.

The acquisition would add the owner of a European Union bank to Payward’s crypto and financial businesses. Saldo Bank’s Lithuanian specialized-bank license took effect Oct. 26, 2021.