Kraken is seeking a full banking license in Europe as the crypto exchange expands its regulated financial services. The company is focusing on Lithuania as the likely jurisdiction for the license, according to a person familiar with the plans.
The move would add a banking layer to Kraken’s existing European licenses. It would also place the exchange deeper inside the financial system as crypto firms seek clearer rules for trading, payments, custody, and institutional services.
Kraken, operated by parent company Payward, is working toward a European banking license through Lithuania. Reportedly, the company has focused on the country as the place to apply. Kraken declined to comment on the report.
A spokesman for the Bank of Lithuania also did not confirm the application. The official said the licensing process for financial market participants is confidential. This response leaves the approval timeline unclear, while the reported plan still points to Kraken’s wider regulatory strategy.
If approved, Kraken would become the only cryptocurrency exchange with a full banking license across the European Economic Area. Such approval could allow the firm to offer euro accounts, hold customer deposits, and provide credit services, subject to product-level approval from regulators.
The license would also place Kraken under direct banking supervision in Lithuania. Regulators would review how the company separates crypto activity from banking services, especially as digital asset firms move closer to traditional financial rails.
Kraken would follow a route already used by Revolut. The fintech company received a specialised European banking license from the Bank of Lithuania in 2018. The approval allowed Revolut to offer current accounts, consumer lending, and stock trading across the European Economic Area.
Lithuania has become a common entry point for financial technology firms seeking access to the wider European Union market. Other companies with banking or specialised banking licenses in the country include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank.
Kraken already holds MiCA authorization through the Central Bank of Ireland. It also holds a MiFID license through Cyprus. These approvals allow the exchange to offer regulated crypto and investment services across the European Union.
The banking license would sit above Kraken’s existing crypto permissions. It would not automatically approve every financial product. The company would still need regulatory clearance for each service it plans to offer.
Kraken’s European banking plan follows a wider push to gain licenses across major markets. In March 2026, Kraken Financial, its Wyoming-chartered bank, received access to the Federal Reserve’s core payments system. This approval allowed the firm to use Fedwire for certain dollar settlement services.
Payward also secured authorization from the United Arab Emirates’ Virtual Assets Regulatory Authority in May 2026. These moves show that Kraken is building regulated access across several regions.
Kraken co-CEO Arjun Sethi described that strategy at Money20/20 Europe in Amsterdam in June 2026. He said, “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.”
This points to a long licensing process, not a completed banking approval. For now, Kraken’s reported Lithuania plan depends on regulatory review, formal approval, and the conditions set by banking supervisors.
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