Kraken Bids to Become Europe's First Crypto Exchange Bank

Kraken targets Lithuania for a European banking licence

Kraken, the cryptocurrency exchange operated by parent company Payward, is pursuing a full banking licence in Europe. According to CoinDesk, which cited a person familiar with the plans, the company has focused on Lithuania as the jurisdiction to secure it. Kraken declined to comment, and a spokesman for the Bank of Lithuania said the licensing process for financial market participants is confidential. If approved, Kraken would become the only cryptocurrency exchange to hold a full European banking licence.

Revolut set the Lithuanian licensing template in 2018

Kraken would follow the same regulatory path as Revolut. The fintech firm holds a specialised European banking licence issued by the Bank of Lithuania in 2018. That licence let Revolut offer full current accounts, consumer lending, and stock trading across the European Economic Area (EEA). Lithuania has become a favoured entry point for firms seeking access to the European Union market without basing themselves in larger financial centres. Other licensees there include Mano Bank, PayRay, and European Merchant Bank.

Kraken won a US Federal Reserve account in March

The European effort follows a milestone in the United States. In March 2026, Kraken Financial, the company's Wyoming-chartered bank, was granted a Federal Reserve master account. The approval made it the first digital asset bank in US history to gain direct access to the Federal Reserve's payment infrastructure. The Kansas City Fed granted the account for an initial one-year term, allowing Kraken to settle dollar transactions directly on Fedwire. Payward also secured authorisation from the United Arab Emirates' Virtual Assets Regulatory Authority (VARA) in May 2026, according to CoinDesk.

What full banking status would allow

A banking licence would place Kraken under direct supervision by the Bank of Lithuania. The firm could then hold customer deposits, offer euro accounts, and extend credit across the European Economic Area. Kraken would still need separate approval for each product, and supervisors would examine how it separates crypto risk from banking services.

Crypto market backdrop frames the banking push

Kraken's expansion comes as digital assets move deeper into regulated finance. The total cryptocurrency market held a capitalisation near $2.27 trillion on 8 July 2026, with Bitcoin accounting for about 55% of that value (CoinPaprika, 8 July 2026).

Sethi outlines a ten-year licensing plan

Kraken co-CEO Arjun Sethi described the strategy at the Money20/20 Europe conference, held in Amsterdam from 2 to 4 June 2026.

"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", 4 June 2026. — Arjun Sethi, co-CEO, Payward and Kraken

According to CryptoBriefing, Kraken already holds authorisation under the Markets in Crypto-Assets regulation (MiCA), the European Union's common rulebook for crypto firms. A banking licence would sit on top of that framework and bring heavier supervision.