Key facts
- Kraken is seeking a full banking license in Europe, focusing on Lithuania.
- The license would enable Kraken to offer services akin to traditional banks.
- Revolut holds a similar specialized European banking license regulated by the Bank of Lithuania.
- Kraken's parent company, Payward, is pursuing global licensing expansions.
- Kraken Financial previously gained access to the Federal Reserve's payment infrastructure.
Cryptocurrency exchange Kraken is reportedly seeking a full banking license in Europe, with Lithuania identified as a key jurisdiction for this endeavor. If successful, Kraken would become the first crypto exchange to hold such a designation, enabling it to offer a broader range of financial services, including current accounts and consumer lending, across the European Economic Area. This strategic move mirrors that of fintech major Revolut, which obtained a specialized European banking license from the Bank of Lithuania in 2018. Kraken's parent company, Payward, is actively pursuing additional licenses globally, having recently secured a VARA authorization in the UAE and becoming the first digital asset bank to access the Federal Reserve's payment infrastructure. CEO Arjun Sethi has outlined a ten-year plan to acquire necessary licenses, either through acquisitions or by establishing new operations in various regions.