Key Highlights
- Kraken is seeking a full European banking license in Lithuania, which could make it the first crypto exchange to hold one.
- The banking license is part of Kraken’s global expansion strategy as it continues to secure regulatory approvals in different regions.
- Kraken’s IPO plans are still on hold, but the company is continuing to prepare for a future public listing while waiting for better market conditions.
Kraken is reportedly pursuing a full banking license in Europe as the cryptocurrency exchange continues to expand its regulatory presence ahead of a planned U.S. initial public offering (IPO).
According to a report citing a person familiar with the matter, the company is seeking the license in Lithuania. If approved, Kraken would become the first crypto exchange to hold a full European banking license, giving it a stronger position in the region. This would help the exchange expand its business and compete more directly with traditional financial companies.
Lithuania has become a popular place for financial technology companies because businesses that receive approval there can offer services across the European Economic Area (EEA), which includes all European Union countries as well as Iceland, Liechtenstein, and Norway.
Following Revolut’s path
Kraken appears to be following a path already taken by fintech company Revolut. The company received a banking license from the Bank of Lithuania in 2018, which later allowed it to offer services such as current accounts, personal loans, and stock trading across Europe.
Several other financial companies have also secured banking licenses in Lithuania, making the country an attractive choice for firms looking to expand across the region. So far, neither Kraken nor the Bank of Lithuania has confirmed the reported plans.
The CryptoTimes has reached out to Kraken for comment but has not received any response yet.
A broader strategy beyond crypto trading
The reported move is part of a broader strategy by Payward, Kraken’s parent company, to secure regulatory approvals worldwide. Rather than focusing solely on crypto trading, the company aims to build a broader financial services business that operates under multiple regulatory frameworks.
Kraken Chief Executive Officer Arjun Sethi outlined that strategy during the Money20/20 Europe conference. “The plan for the next 10 years is to get all of these licenses, either through buying an existing business or going de novo in each region and starting from scratch,” he said.
Expanding its global regulatory footprint
The company had been making progress toward that goal. In March 2026, Kraken Financial became the first digital asset bank to gain access to the U.S. Federal Reserve’s payment system. This allows the company to move money through the same payment network used by traditional banks, marking an important milestone for the crypto industry.
Two months later, Payward also received authorization from Dubai’s Virtual Assets Regulatory Authority (VARA), giving it another important regulatory approval outside the United States.
IPO plans remain on hold
The reported licensing effort comes as Kraken continues working toward a future stock market listing. The company confidentially filed a draft S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), which is one of the first formal steps companies take before launching an IPO.
However, Kraken later decided to put those plans on hold because market conditions were not considered strong enough.
The company has also taken steps to prepare its business for the future. It recently cut about 150 jobs from its workforce of around 3,000 employees as part of an effort to improve its operations before a possible public listing. Although Kraken did not directly comment on the reported layoffs, it said it regularly reviews its business structure to make sure it has the right team in place to support long-term growth and better serve customers.
While the company has not announced a timeline for its IPO, its reported pursuit of a European banking license suggests it is continuing to strengthen its regulatory position globally as it prepares for a future public listing.
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