Kraken is pursuing a full banking license in Lithuania as the cryptocurrency exchange prepares for a public listing in the U.S. The company is focused on Lithuania as the jurisdiction for the license, according to a person familiar with the plans. If approved, Kraken would become the only crypto exchange with that kind of European banking designation. The licensing process remains confidential, and Kraken declined to comment. The move would mark a strategic shift for Kraken, allowing the exchange to offer broader financial services under a banking framework, including deposit products, lending, payments, and deeper integration with European financial infrastructure. This pursuit comes as Europe's Markets in Crypto-Assets framework has created a clearer regulatory perimeter for digital asset firms, though crypto companies still need additional permissions to offer services beyond exchange trading.
Lithuania Hosts Established Fintech Banking License Framework
Lithuania has become an important European licensing hub for fintech firms. Revolut received a specialized European banking license from the Bank of Lithuania in 2018, allowing it to offer current accounts, consumer lending, and stock trading across the European Economic Area. Other firms holding banking or specialized banking licenses in Lithuania include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank. That licensing base gives Lithuania a clear role in Europe's fintech market, especially for firms seeking access to the wider EEA through a regulated banking structure. A spokesman for the Bank of Lithuania said applications by financial market participants are not publicly discussed.
Kraken Financial Gained Federal Reserve Access in March 2026
The European banking plan is part of a broader licensing strategy by Payward, Kraken's parent company. In March 2026, Kraken Financial became the first digital asset bank to gain access to the Federal Reserve's payment infrastructure. That allowed it to operate on the same payment rails used by traditional financial institutions, giving the company a stronger position in U.S. settlement and banking connectivity. In May 2026, Payward also secured authorization from the UAE's Virtual Assets Regulatory Authority. That approval added another regulated market to Kraken's international footprint and aligned with the company's broader plan to obtain licenses in key regions. Kraken CEO Arjun Sethi described that strategy during a recent talk at Money 20/20 Europe: "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."
Banking License Would Enable Broader Product Offerings for Crypto Exchanges
A European banking license would give Kraken a different competitive profile from crypto exchanges that remain focused mainly on trading, custody, and staking. It could allow the company to package crypto services alongside bank-style products, giving users a single platform for digital assets and traditional financial activity. For institutional clients, banks, asset managers, and corporate clients are more likely to work with firms that have strong regulatory permissions, direct financial infrastructure access, and banking-grade compliance. A banking license could reduce counterparty concerns and make Kraken more attractive for clients that need regulated settlement, cash management, or lending services tied to crypto markets. For retail users, the implications could include broader account services and more integrated fiat access. That would place Kraken closer to fintech platforms that compete on convenience, payments, and multi-asset access rather than only crypto execution.
Licensing Strategy Supports Kraken's Planned US Public Listing
Kraken's plan to go public in the U.S. gives its licensing strategy added importance. Public-market investors are likely to assess the company not only as a crypto exchange, but as a financial platform trying to build durable regulated revenue streams. Banking permissions can support a stronger valuation narrative by showing that Kraken is not fully dependent on crypto market cycles, trading volumes, or retail speculation. A wider license base could also help the company present itself as a regulated global financial infrastructure firm rather than a pure exchange. Banking brings heavier oversight, capital obligations, operational scrutiny, and political attention. Crypto firms entering banking must meet expectations built for traditional finance while still managing digital asset risks, cybersecurity demands, and market volatility.
FAQ
What banking license is Kraken pursuing in Europe?
Kraken is pursuing a full banking license in Lithuania. If approved, Kraken would become the only crypto exchange with that kind of European banking designation, allowing it to offer broader financial services under a banking framework including deposit products, lending, payments, and deeper integration with European financial infrastructure.
When did Kraken Financial gain access to the Federal Reserve's payment infrastructure?
In March 2026, Kraken Financial became the first digital asset bank to gain access to the Federal Reserve's payment infrastructure. That allowed it to operate on the same payment rails used by traditional financial institutions, giving the company a stronger position in U.S. settlement and banking connectivity.
What other regulatory approvals has Payward secured recently?
In May 2026, Payward secured authorization from the UAE's Virtual Assets Regulatory Authority. That approval added another regulated market to Kraken's international footprint and aligned with the company's broader plan to obtain licenses in key regions.
