Kraken Pursues European Banking License with Focus on Lithuania

Kraken, the cryptocurrency exchange preparing for a public listing in the United States, is actively pursuing a full banking license in Europe with a focus on Lithuania as the preferred jurisdiction. This initiative could position Kraken as the only cryptocurrency exchange with such a designation, as highlighted by a source familiar with the company's plans.

CEO Arjun Sethi indicated that Kraken's strategy involves obtaining banking licenses across various regions over the next ten years, either by acquiring existing businesses or establishing new entities. This approach mirrors that of Revolut, which secured its specialized European banking license from the Bank of Lithuania in 2018, allowing it to provide services like current accounts and consumer lending throughout the European Economic Area (EEA).

Kraken's efforts to gain full banking status align with its parent company, Payward's broader ambition to expand globally. In March 2026, Kraken Financial became the first digital asset bank to access the Federal Reserve’s payment infrastructure, marking a significant milestone in integrating digital assets into traditional financial systems. Following this, in May, Payward announced it had obtained authorization from the Virtual Assets Regulatory Authority (VARA) in the United Arab Emirates.

Kraken's move comes at a time when regulatory landscapes for cryptocurrency exchanges are evolving. The Bank of Lithuania has stated that the licensing process for financial entities is confidential, and Kraken has opted not to comment on its plans publicly. Other financial technology firms with banking licenses in Lithuania include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank.

CEO Sethi emphasized the importance of regulatory compliance in the cryptocurrency industry, stating, "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." As Kraken navigates this process, industry watchers will monitor its progress towards establishing itself firmly in the banking sector within Europe.