Kraken Eyes European Banking License as Global Regulatory Push Continues

TLDR

• Kraken is seeking a full banking license in Europe, targeting Lithuania as its preferred jurisdiction
• If approved, Kraken would be the only crypto exchange to hold a European banking license
• It would follow the same regulatory path as fintech firm Revolut, licensed by the Bank of Lithuania in 2018
• Kraken already holds MiCA authorization through Ireland and a MiFID license through Cyprus
• Earlier in 2026, Kraken Financial became the first crypto firm to access the US Federal Reserve’s payment infrastructure

Kraken, one of the world’s largest crypto exchanges, is working to obtain a full banking license in Europe. The exchange is focused on Lithuania as its target jurisdiction, according to a person familiar with the plans.

Kraken declined to comment. The Bank of Lithuania said the licensing process for financial market participants is confidential.

If approved, Kraken would become the first crypto exchange to hold a full European banking license. That would allow it to offer services like current accounts, consumer lending, and broader payment features across the European Economic Area.

The path Kraken is taking is not new. Revolut, the fintech company, obtained a specialized banking license from the Bank of Lithuania back in 2018. That license allowed Revolut to expand financial services across the EEA. Other firms with banking or specialized bank licenses in Lithuania include Mano Bank, PayRay, and EMBank.

Kraken Already Has a Foothold in European Regulation

Kraken currently holds MiCA authorization through the Central Bank of Ireland. It also holds a MiFID license through Cyprus. Together, these allow the exchange to offer regulated services to users across the EU.

MiCA enforcement began across the EU on July 1, 2026. Kraken has been using its existing licenses to position itself as a compliant platform for European users under the new framework.

A banking license would go further. It would allow Kraken to connect crypto trading more directly to traditional financial systems, including payments, custody, and institutional services.

Building a Global Regulated Stack

The European banking push is part of a wider licensing strategy by Payward, Kraken’s parent company.

In March 2026, Kraken Financial became the first crypto firm to gain access to the Federal Reserve’s core payments infrastructure. That gave its US banking arm direct access to Fedwire for certain services.

In May 2026, Payward secured a VARA authorization in the UAE, adding another regulated market to its portfolio.

Kraken co-CEO Arjun Sethi spoke at Money 2020 Europe and outlined the company’s direction. He said the plan for the next ten years is to obtain licenses in each region, either by buying an existing business or starting from scratch.

Kraken is also planning to go public in the United States, adding further pressure to build out a clean regulatory record across major markets.

The Lithuania banking license, if secured, would be one of the more meaningful steps in that effort. It would give Kraken access to traditional banking rails in Europe and put it ahead of other crypto exchanges in terms of regulatory reach.

No timeline for the application or approval has been made public.

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