Summary
Kraken, the cryptocurrency exchange planning to go public in the US, is pursuing a full banking license in Europe with a focus on Lithuania as the jurisdiction to secure it. If successful, Kraken would become the only crypto exchange to hold a full banking license in Europe, following the same regulatory path as Revolut, which holds a specialized European banking license issued by the Bank of Lithuania in 2018. Kraken CEO Arjun Sethi stated the plan is to acquire licenses over the next 10 years through acquisitions or de novo applications in each region. Kraken Financial already became the first digital asset bank to access the Federal Reserve's payment infrastructure in March 2026.
Key Facts
- Target jurisdiction: Lithuania (Bank of Lithuania)
- Following Revolut's path: specialized European banking license issued 2018
- Would be the only crypto exchange with full EU banking license
- Kraken Financial: first digital asset bank with Fed payment infrastructure access (March 2026)
- Payward secured VARA authorization in UAE (May 2026)
- CEO Sethi: 10-year plan to get all licenses through acquisition or de novo
- Other Lithuania-licensed fintech banks: Mano Bank, PayRay, EMBank, Fjord Bank, Saldo Bank
Why It Matters
Kraken's pursuit of a full European banking license represents the next stage of crypto exchange evolution: moving from trading platforms to regulated banks that can offer current accounts, consumer lending, and stock trading alongside crypto services. If approved, Kraken would gain the ability to offer full banking services across the European Economic Area through MiCA's passporting mechanism, fundamentally changing its competitive position against both traditional banks and crypto-native rivals.