Kraken Eyes Banking License From Lithuania To Become First Crypto Exchange With Full EU Bank Status

Kraken Wants To Become Europe's First Crypto Bank

Kraken is preparing to apply for a full banking licence in Europe, with Lithuania emerging as its preferred base for the application, according to a person familiar with the plans cited by CoinDesk.

Should the application succeed, the exchange would become the first cryptocurrency platform to hold a complete European banking licence, a status that would let it offer services such as current accounts, lending and expanded payment options across the European Economic Area.

Why Lithuania Is The Chosen Base

Lithuania has built a reputation as a friendly entry point for fintech firms chasing EU-wide banking rights.

Revolut took the same route back in 2018, picking up a specialised banking licence from the Bank of Lithuania before scaling its services across the bloc.

Other firms, including Mano Bank, PayRay and EMBank, have also secured banking or specialised banking approvals in the country.

For Kraken, following this path would offer a quicker and more established route into European banking than starting from scratch elsewhere.

Neither Kraken nor the Bank of Lithuania has confirmed details of any application.

The central bank said licensing procedures for financial market participants are kept confidential, and Kraken has declined to comment on the reported plans.

What Regulatory Ground Kraken Already Covers

Kraken isn't starting from zero in Europe.

The exchange holds MiCA authorisation through the Central Bank of Ireland and a MiFID licence issued by Cypriot regulators, both of which allow it to serve customers across the EU.

That footing has become more significant since 1 July 2026, when MiCA rules came into force across the entire bloc, effectively raising the bar for what counts as a compliant crypto platform in Europe.

A banking licence would sit on top of these approvals, linking Kraken's crypto trading operations directly to conventional banking infrastructure such as custody, payments and institutional services.

How This Fits Kraken's Global Playbook

The Lithuanian plan is one piece of a much larger licensing drive by Payward, Kraken's parent company.

In March 2026, Kraken Financial became the first digital asset bank to gain access to the US Federal Reserve's payment infrastructure, giving it direct entry to Fedwire for select operations.

Two months later, in May 2026, Payward secured authorisation from Dubai's Virtual Assets Regulatory Authority, adding another regulated market to its list.

Speaking at Money 2020 Europe, Kraken chief executive Arjun Sethi laid out the thinking behind this steady accumulation of licences.

"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."

Why The Timing Matters

Kraken is also understood to be lining up a potential US initial public offering, which gives the company added reason to build a clean, well documented compliance record across major markets before it goes public.

A European banking licence, particularly one that makes it the first crypto exchange to hold such status, would strengthen that record considerably and set it apart from rivals still operating purely as licensed exchanges rather than banks.

As a privately held company, Kraken's valuation isn't reflected in a public share price, so licences like this one are among the clearest signals available of how the business is positioning itself ahead of any listing.