A full license, targeted in Lithuania, would make Kraken the only crypto exchange to operate as a bank, following Revolut’s playbook.
Posted July 8, 2026 at 6:07 am EST.
Kraken is seeking a full banking license in Europe, focusing on Lithuania as the jurisdiction where it hopes to secure the designation, CoinDesk reported Tuesday, citing a person familiar with the plans. Success would make Kraken the only cryptocurrency exchange to hold a full banking license.
The exchange would tread the same regulatory path as fintech major Revolut, which obtained a specialized banking license from the Bank of Lithuania in 2018, according to the report. That license let Revolut offer full current accounts, consumer lending, and stock trading across the European Economic Area.
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A banking license would let Kraken hold deposits and offer lending and payments directly, rather than routing those services through partner banks, deepening the blurring of lines between crypto exchanges and traditional financial institutions.
The European push is part of a broader licensing effort by Payward, Kraken’s parent. In March, Kraken’s banking arm won a Federal Reserve master account, granting direct access to the U.S. payment system. In May, Payward secured a virtual asset authorization in the United Arab Emirates. Speaking at Money 20/20 Europe, co-CEO Arjun Sethi said the plan for the next decade is to obtain licenses in each region, either by acquiring existing businesses or building from scratch.
Kraken, founded in 2011, filed confidentially for a U.S. IPO last November alongside an $800 million raise that valued it at $20 billion, though it reportedly paused those plans in March as market conditions weakened.
Related Listen: Why Fintechs May Finally Beat Banks at Their Own Game: DEX in the City
AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
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