Kraken is pursuing a full European banking license, with Lithuania as the target jurisdiction. If successful, the crypto exchange would become the first digital asset platform to hold a full banking license in Europe, following the same path as Revolut, which secured a specialized European banking license issued by the Bank of Lithuania in 2018. Kraken declined to comment, and the Bank of Lithuania said the licensing process is confidential.
From exchange to bank: The Lithuanian path
It is known that, lately, Lithuania has become a favored destination for fintech firms seeking European banking licenses. Revolut paved the way back in 2018, using its Lithuanian license to offer full current accounts, consumer lending, and stock trading across the European Economic Area (EEA). Other fintech firms with specialized bank licenses in Lithuania include Mano Bank, PayRay, European Merchant Bank, AB Fjord Bank, and Saldo Bank.
For Kraken, getting this license would mean they can finally offer more than just crypto. They’d be able to give European users regular banking products, basically bridging the gap between your crypto wallet and your everyday bank account. It’s all part of a big 10-year plan by their parent company, Payward, to pick up licenses all around the globe.
Why everyone is looking at Lithuania right now
So, why did Kraken pick Lithuania? Well, it’s basically the place to be if you are a fintech looking to grow in Europe. The vibe there is super crypto-friendly, and they have made it really easy for companies to get licensed and set up shop without all the usual regulatory headaches.
Kraken isn’t the only one crashing the party, either. Big names like Coinbase and crypto.com are already active in Lithuania, so clearly, they are onto something good.
The timing is also perfect. With Europe’s new Markets in Crypto-Assets (MiCA) rules kicking in, every exchange has to step up their game. Instead of just doing the bare minimum to stay legal, Kraken is using this as a chance to leapfrog everyone else and become the first real crypto-native bank on the continent; a pretty bold move.
Kraken’s broader licensing push
This European banking license is actually just one part of Kraken’s massive global expansion. They have been on a roll lately. Back in March 2026, Kraken Financial made history by becoming the first digital asset bank to plug directly into the Fed’s payment system, as well as applying for a national trust charter in the U.S.
Then in May, Payward announced it bagged a Virtual Assets Regulatory Authority (VARA) authorization in the United Arab Emirates (UAE). On top of that, they are gearing up for a big U.S. initial public offering (IPO), with co-CEO Arjun Sethi mentioning they are already “80 percent ready” to hit the public markets.
At the recent Money 2020 Europe event, Sethi laid out the master 10-year plan: basically, they’re going to grab every license they need, whether that means buying up existing companies or starting from scratch in new regions.
If this Lithuanian banking license goes through, Kraken will officially be the first crypto exchange to hold a full European banking license. It’s a huge step in their journey from being just a trading platform to becoming a full-blown financial powerhouse.
