Kraken Seeks European Banking License With Lithuania in Focus

Kraken is seeking a full banking license in Europe, with Lithuania emerging as the jurisdiction in focus, according to a person familiar with the company’s plans cited by CoinDesk. The crypto exchange declined to comment, while the Bank of Lithuania said licensing processes for financial market participants are confidential.

The move matters because a banking license could place Kraken deeper inside Europe’s regulated financial system. If approved, CoinDesk reported that Kraken would become the only crypto exchange with that designation, potentially widening the kinds of financial services it can offer under a traditional banking framework.

Kraken would be following a path already used by major fintech firms in Lithuania. Revolut obtained a specialized European banking license from the Bank of Lithuania in 2018, which allowed it to offer current accounts, consumer lending and stock trading across the European Economic Area.

Lithuania is already home to several fintech companies with banking or specialized bank licenses, including Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank and Saldo Bank. That context helps explain why the country is closely watched by financial technology companies seeking a regulated base in Europe.

The European banking effort is part of a broader licensing strategy at Payward, Kraken’s parent company. CoinDesk reported that Kraken Financial became the first digital asset bank to gain access to the Federal Reserve’s payment infrastructure in March 2026, and that Payward secured authorization from Dubai’s VARA in May.

Kraken CEO Arjun Sethi recently said at Money 2020 Europe that the company’s plan over the next decade is to obtain licenses either by acquiring existing businesses or applying directly in each region. The European banking push suggests Kraken is looking beyond exchange services as crypto firms compete for more regulated roles in mainstream finance.