Kraken Pursues Full Banking License in Lithuania, Sources Say

Kraken, the cryptocurrency exchange preparing a U.S. initial public offering, is chasing a full banking license in Europe with Lithuania as the target jurisdiction, according to a person familiar with the plans.

If approved, Kraken would become the only crypto exchange to hold such a designation. The move follows the same regulatory route Revolut took in 2018, when it secured a specialized European banking license supervised by the Bank of Lithuania. That license lets Revolut offer current accounts, consumer lending, and stock trading across the European Economic Area. Other fintech banks holding licenses in Lithuania include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank.

Kraken declined to comment on the plans. A spokesman for the Bank of Lithuania said the licensing process for financial market participants is confidential.

The banking license push is part of a broader effort by Payward, Kraken's parent company, to layer on regulatory credentials globally. In March 2026, Kraken Financial became the first digital asset bank to gain access to the Federal Reserve's payment infrastructure, putting it on the same settlement rails as traditional banks. In May, Payward secured a VARA authorization in the UAE.

CEO Arjun Sethi told Money 2020 Europe the firm's aim is to get all necessary licenses in each region, either by buying an existing business or starting from scratch. "The plan for the next 10 years is to get all of these licenses," he said.

A bank designation would let Kraken offer fiat banking services directly – current accounts, lending, deposit-taking – without relying on third-party partners. That could lower costs for institutional clients who currently move money through partner banks, and it would bring the exchange's European operations under a single regulatory umbrella. Revolut's experience shows how a specialized license can enable product expansion; Kraken would gain similar latitude in the EEA.

The broader crypto market analysis continues to face regulatory fragmentation. Kraken's strategy – pile up licenses wherever possible – mirrors moves by Coinbase and others, a full banking license remains rare in the sector. The Bank of Lithuania did not confirm any timeline for a decision. Kraken declined to comment on the application's status.