Payward Inc., the parent of cryptocurrency exchange Kraken, announced on October 14 that it has signed a definitive agreement to purchase Saldo Finance Oy, a Finnish holding company that owns Lithuania-based Saldo Bank. The deal would transfer control of a licensed European bank holding approximately €163 million in assets, including deposits, lending and payment services across several markets. Financial terms were not disclosed, and the transaction is expected to close in 2027 pending regulatory approval. The acquisition reflects Payward's effort to build a financial platform that can manage both digital and traditional assets while reducing reliance on external banking partners.

Saldo Bank, though modest in size, has expanded its operations in recent years. Its audited financial statements for 2025 show assets of €162.9 million, up from €133.6 million in 2024, with a net loan portfolio rising to €113.5 million from €95.4 million and retail deposits increasing 24% to €136.9 million. The bank reported its first annual profit of about €962,000 in 2025, reversing a €2.4 million loss the prior year. Operating profit before impairment losses reached €10.4 million, though most of it was offset by credit impairment charges. These figures indicate an operational lending business with a stable deposit base, though its balance sheet remains smaller than those of major European institutions.

Saldo operates in Lithuania, Finland, Sweden and Germany, and holds authorization to expand into the Netherlands. It offers retail term deposits across its markets, consumer lending in three countries and business loans in Lithuania and Finland. The acquisition would allow Payward to leverage Saldo's infrastructure for expanding its financial products in Europe without establishing a new bank from scratch. Payward plans to introduce interest-bearing deposits, business and consumer lending, card issuance and SEPA payment services for European customers. The move could also support a broader banking-as-a-service model, enabling other fintech firms to access regulated financial infrastructure through Payward.

Co-CEO Arjun Sethi described the transaction as part of a strategy to deepen financial relationships with customers. He stated, “We believe whoever owns that relationship earns the right to serve everything around it.” The acquisition builds on Payward's prior efforts to gain greater control over financial infrastructure, including securing a limited-purpose Federal Reserve master account in March and holding an electronic money institution license from Ireland's Central Bank. Its existing banking operations have originated over $2 billion in loans, and in July it acquired Reap, a stablecoin-focused firm specializing in card issuance and cross-border transactions.

The Saldo acquisition would extend Payward's capabilities into regulated European deposit-taking and lending, potentially enabling a unified platform for banking, cryptocurrency trading and payment services. The company emphasized that the goal is not to become a traditional bank but to acquire infrastructure that allows European clients to hold assets, move them freely and deploy them effectively through a single entity. Regulatory approval from European authorities remains a critical step, as Saldo operates under Lithuanian banking rules that permit deposit-taking and lending but restrict certain investment activities. Ownership of Saldo would not automatically permit integration of all cryptocurrency or investment products into the bank.

The transaction will also require scrutiny of Payward's financial condition, management structure and compliance systems. Saldo's 2025 financial statements show total equity of €16.3 million, with a common equity Tier 1 capital ratio of 14.9% and a total capital adequacy ratio of 19.8%. These capital metrics are relevant as Payward considers expanding the bank's loan portfolio and other services post-acquisition.