Kraken eyes a European banking licence, with Lithuania in its sights
Crypto exchange Kraken is reportedly pursuing a full banking licence in Europe, a move that would make it the first crypto exchange to operate as a licensed bank in the region. According to a report from CoinDesk, citing a person familiar with the plans, the company has settled on Lithuania as its preferred jurisdiction.
Neither Kraken nor the regulator has confirmed the application. A Kraken spokesperson declined to comment, and the Bank of Lithuania said only that "the licensing process of financial market participants is confidential." So this remains, for now, a reported ambition rather than a done deal.
If the licence is granted, Kraken would move well beyond the trading desk. A full banking authorisation would let it take deposits, offer lending and investment products, and passport those services across the European Economic Area from a single base. It is the same route fintech Revolut took, securing a specialised banking licence from the Bank of Lithuania in 2018 before scaling across the continent.
Lithuania has spent years positioning itself as one of the EU's most fintech-friendly entry points, and Kraken already has a foothold there. The exchange is said to hold a MiCA authorisation as a crypto-asset service provider and has picked up an electronic money institution licence in the country, both of which would sit under a banking licence should one be approved.
The timing is notable. Kraken is preparing for a possible US initial public offering, and a European banking licence would strengthen its regulated-finance credentials ahead of any listing. It also fits a stated long-term strategy. Speaking at Money20/20 Europe, chief executive Arjun Sethi said "the plan for the next 10 years is to get all of these licenses, either by buying an existing business, or going de novo in each region."
The bigger picture is one of convergence. Crypto exchanges increasingly want the deposit rails, consumer trust and cross-border reach that come with a banking licence, while established banks continue to inch toward digital assets. Kraken's parent, Payward, has been building out that regulatory footprint globally, gaining access to the US Federal Reserve's payment infrastructure in March 2026 and securing authorisation from Dubai's Virtual Assets Regulatory Authority in May.
Whether Lithuania grants the licence, and how long any review takes, remains to be seen. But the direction of travel is clear: the line between crypto exchange and regulated bank is getting harder to draw.
