Kraken is applying for a full banking license in Lithuania, adding a deposit-taking charter to its existing EMI and MiCA licenses. The move would cut reliance on third-party fiat rails and unlock credit products.
Kraken is applying for a full banking license in Lithuania, CoinDesk reported, adding a deposit-taking charter to a growing European regulatory stack.
Kraken's European unit, Payward Europe, secured an Electronic Money Institution (EMI) license in Lithuania in early July 2026. That EMI allows the company to issue electronic money, hold customer funds, and process payments without full bank status.
The exchange already held a MiCA CASP authorization from Ireland's Central Bank, obtained in June 2025. Because MiCA licenses passport across all European Economic Area members, Kraken can offer crypto services in every EEA country from a single Irish anchor. That includes Lithuania.
So the current picture stacks three layers: a Europe-wide crypto license, a Lithuanian payments license, and now an application for a full banking charter in the same jurisdiction.
Back in the United States, Kraken Financial has operated under a Wyoming Special Purpose Depository Institution (SPDI) charter since 2020. The SPDI lets Kraken hold digital and traditional assets under state banking supervision, without FDIC insurance.
Lithuania has issued more than 200 fintech licenses, according to data from the Bank of Lithuania. The country's regulator processes applications faster than many peers, a deliberate policy choice that has made it a hub for fintech firms seeking European market access.
A Lithuanian banking license would let Kraken hold customer deposits, offer credit products, and run euro payment rails directly. Most crypto exchanges rely on correspondent banks or payment processors for fiat movement. Owning the rails would cut that dependency, accelerate euro deposits and withdrawals, and unlock products a pure crypto license cannot cover.
Coinbase obtained an EMI license in Ireland in 2023 and has been building its European presence under MiCA. Binance has faced more regulatory friction across the continent, including license withdrawals in several member states.
Kraken declined to comment on the timeline for the Lithuanian application, CoinDesk reported. The Bank of Lithuania typically takes 6 to 12 months to process full banking license applications, the regulator has stated in its published guidelines.
The license, if granted, would make Kraken the first crypto exchange to operate a full banking charter inside the European Union.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.