IPO-Bound Crypto Exchange Seeks specialized Banking Status to Replicate Revolut’s Passporting Blueprint
Kraken, the major digital asset exchange currently outlining plans for an initial public offering (IPO) in the United States, is actively pursuing a full banking license in Europe. According to sources close to the matter, the platform has focused its legislative strategy on Lithuania as the key regulatory jurisdiction to secure the designation.
If finalized, the regulatory approval would establish Kraken as the only cryptocurrency exchange globally to hold a specialized European banking status. The initiative mimics the structural path deployed by digital banking giant Revolut, which secured a specialized banking framework from the Bank of Lithuania in 2018 to roll out fully integrated financial solutions across the European Economic Area (EEA).
Replicating the FinTech Passporting Framework
By seeking licensing through the Bank of Lithuania, Kraken’s parent company, Payward, intends to exploit the region’s passporting framework to unlock cross-border financial services. Under this regime—previously used by platforms like Revolut—a specialized license allows digital asset firms to provide comprehensive current accounts, consumer credit lending, and equity stock trading throughout the entire EEA without requiring separate applications in each member state.
Lithuania has systematically transformed into a premier digital banking hub, hosting multiple specialized and full banking entities, including:
| Fintech Institution | License Type / Scope | Regional Oversight |
| Mano Bank | Specialized Banking Infrastructure | Bank of Lithuania |
| PayRay | Specialized / Consumer Lending Core | Bank of Lithuania |
| European Merchant Bank (EMBank) | Corporate / Merchant Specialized Banking | Bank of Lithuania |
| AB Fjord Bank | Specialized Consumer Finance | Bank of Lithuania |
| Saldo Bank | Automated Lending & Banking | Bank of Lithuania |
While the Bank of Lithuania stated that all onboarding and application processes for financial market participants remain strictly confidential, the ongoing push marks a dramatic pivot toward unifying crypto liquidity with standard retail banking services. Kraken itself declined to provide official commentary regarding the current stage of its application.
Payward’s Aggressive Global Licensing Campaign
The European initiative forms a core pillar of a broader, multi-jurisdictional licensing campaign orchestrated by Payward. The platform has made rapid advancements in traditional and digital regulatory environments:
- United States Infrastructure: In March 2026, Kraken Financial became the first digital asset bank to gain direct access to the U.S. Federal Reserve’s payment rails, allowing it to clear transactions natively on the same infrastructure as traditional corporate banks.
- Middle East Integration: In May 2026, the parent group expanded its regulatory footprint into the UAE by securing an official Virtual Assets Regulatory Authority (VARA) authorization.
Speaking at the Money 20/20 Europe conference, Kraken CEO Arjun Sethi emphasized that corporate compliance and local integration will define the group’s operational roadmap:
“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.”
