When a crypto exchange begins seeking bank status, the familiar line between the "wild" world of digital assets and the rigid banking system begins to blur. Kraken, one of the industry's longest-standing platforms, is now aiming for a full banking license in Europe, with a clear focus on Lithuania.
According to CoinDesk, the company plans to secure the license specifically through the Lithuanian regulator. This follows the same path taken by Revolut in 2018, when a specialized banking license from the Bank of Lithuania enabled the fintech giant to offer current accounts, loans, and stock trading across the EEA. Should Kraken succeed, it would become the first crypto exchange to achieve such status.
This move is motivated by more than just a desire to "fit in." Its parent company, Payward, already secured access to the U.S. Federal Reserve’s payment infrastructure in March 2026 and obtained VARA authorization in the UAE. CEO Arjun Sethi stated plainly at the Money 20/20 Europe conference that the company intends to collect licenses worldwide over the next decade, either by acquiring established businesses or building them from scratch.
In this regard, Lithuania appears to be a logical choice. Several fintech-oriented banks, such as Mano Bank, PayRay, and European Merchant Bank, are already operating there. The regulator is known for being relatively open to innovation, while the licensing process remains confidential. Kraken declined to comment, while the Bank of Lithuania confirmed that no details are being disclosed.
At first glance, this is a classic story of legitimization. Capital that previously flowed through parallel channels now seeks to merge with the financial mainstream. However, there is a different calculation at play: a banking license provides access to cheaper funding, the ability to offer loans and deposits, and, most importantly, the trust of customers who still view crypto as a high-risk zone.
Imagine a river that for centuries flowed around official dams. Now, it is asking for permission to build its own lock. The question is not whether the gate will be opened, but what will happen to the water once it falls under collective oversight.
Ultimately, Kraken is doing more than just changing its status—it is changing the rules of the game that all market participants must now play.
