Kraken Pursues Full Banking License in Lithuania to Expand European Operations

Key Highlights

Table of Contents

Kraken is pursuing comprehensive banking authorization in Europe, with Lithuania identified as the target regulatory jurisdiction
Success would make Kraken the first cryptocurrency exchange platform to secure full European banking credentials
The strategy mirrors Revolut’s approach, which obtained Lithuanian banking authorization in 2018
The exchange currently operates with MiCA approval via Ireland and maintains a MiFID license through Cyprus
In March 2026, Kraken Financial achieved a milestone by becoming the first digital asset company to connect with the US Federal Reserve’s payment systems

Kraken, ranking among the globe’s leading cryptocurrency trading platforms, is actively pursuing full banking credentials within Europe. Sources with knowledge of the initiative indicate Lithuania has been selected as the preferred regulatory jurisdiction.

Crypto exchanges are no longer trying to stay outside banking.

Kraken is reportedly pursuing a full banking license in Europe, with Lithuania in focus.

If approved, it would push crypto infrastructure closer to traditional finance rails, where custody, payments, settlement, and… pic.twitter.com/c9HGuy48aN

— Tork Labs (@Tork_Lab) July 8, 2026

Kraken representatives declined to provide commentary on the matter. Lithuania’s central bank noted that licensing procedures for financial services entities remain confidential.

Should approval be granted, Kraken would achieve a historic first by becoming the initial crypto trading platform to secure comprehensive European banking authorization. This designation would enable the company to provide traditional banking products including checking accounts, consumer credit facilities, and expanded payment capabilities throughout the European Economic Area.

The regulatory strategy Kraken is implementing follows established precedent. Revolut, the digital banking provider, secured a specialized banking charter from Lithuania’s banking authority in 2018. This authorization enabled Revolut to broaden its financial service offerings across the EEA. Additional institutions holding banking or specialized financial licenses in Lithuania include Mano Bank, PayRay, and EMBank.

Existing European Regulatory Framework

Currently, Kraken maintains MiCA compliance authorization through Ireland’s Central Bank. Additionally, the platform holds a MiFID license issued by Cypriot authorities. These regulatory approvals collectively enable the exchange to deliver compliant services to customers throughout the European Union.

MiCA regulations took full effect across EU member states on July 1, 2026. Kraken has leveraged its current licensing structure to establish itself as a compliant operator for European customers under these new regulatory requirements.

Securing banking credentials would represent a significant advancement. This would enable Kraken to integrate cryptocurrency trading operations more seamlessly with conventional financial infrastructure, encompassing payment processing, asset custody, and institutional-grade services.

Constructing a Worldwide Regulatory Infrastructure

The European banking credential pursuit forms part of a broader licensing initiative by Payward, Kraken’s parent organization.

During March 2026, Kraken Financial achieved recognition as the first digital asset company to secure access to the Federal Reserve’s primary payment infrastructure. This breakthrough provided its American banking division with direct Fedwire connectivity for specific services.

In May 2026, Payward obtained VARA authorization in the United Arab Emirates, incorporating another regulated jurisdiction into its operational framework.

Kraken co-CEO Arjun Sethi addressed attendees at Money 2020 Europe, articulating the company’s strategic vision. He indicated the organization’s ten-year roadmap involves obtaining regulatory licenses across all major regions, either through acquisition of established entities or building operations from the ground up.

Kraken is additionally preparing for a public listing in the United States, creating additional incentive to develop a comprehensive regulatory compliance track record across significant markets.

The Lithuanian banking license, if obtained, would constitute one of the most significant milestones in this initiative. It would provide Kraken with access to traditional banking infrastructure throughout Europe and position the exchange ahead of competitors regarding regulatory breadth.

No official timeline for the application process or potential approval has been disclosed publicly.

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