- Kraken has reportedly applied to the Bank of Lithuania (Lithuania’s central bank and financial regulator) for a full banking license.
- If approved, this would make Kraken the first major crypto exchange to hold full banking status in the EU.
- The license would let Kraken offer regulated banking services across the European Economic Area (EEA) — the EU member states plus Iceland, Liechtenstein, and Norway.
- Neither Kraken nor the Bank of Lithuania has confirmed the application as of this report.
Kraken, the U.S.-based cryptocurrency exchange, has reportedly applied for a full banking license from the Bank of Lithuania, according to a person familiar with the matter. If confirmed and approved, the license would make Kraken the first major crypto exchange to hold full banking status in Europe, following a regulatory path previously used by fintech company Revolut to scale across the bloc.
A full banking license would let Kraken offer regulated banking services across the EEA, extending beyond its existing cryptocurrency trading and custody business.
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Founded in 2011, Kraken is one of the world’s largest cryptocurrency exchanges, offering spot trading, derivatives, custody, and institutional crypto services. Banking authorization would potentially allow Kraken to accept customer deposits, provide lending services, and offer other banking products permitted under EU regulations.
Why is Kraken Seeking a Banking License in Lithuania?
Lithuania offers a fast route to EU-wide market access through “passporting” — a system that lets a financial institution licensed in one EEA country offer services across all other EEA member states without separate approvals in each one.
Lithuania has positioned itself as a fintech-friendly jurisdiction within the EU to attract companies seeking this kind of access.
The Bank of Lithuania granted Revolut a specialized banking license in 2018, which allowed Revolut to expand services — including current accounts, lending, and investment products — across the EEA via passporting.
By reportedly applying to the same regulator, Kraken appears to be pursuing that same established route rather than seeking separate licenses country by country.
How is Kraken Expanding Beyond Cryptocurrency Trading?
The reported Lithuanian application fits into a broader pattern of regulatory expansion Kraken has pursued globally.
In March 2026, Kraken Financial became the first crypto firm to gain direct access to the U.S. Federal Reserve’s payment infrastructure. In May 2026, Kraken’s parent company, Payward, secured authorization from the UAE’s Virtual Assets Regulatory Authority (VARA).
Kraken CEO Arjun Sethi has outlined a 10-year strategy focused on expanding the company’s global regulatory footprint, either by acquiring already-licensed businesses or building out licensed operations market by market.
Why Does a Banking License Matter Before Kraken’s IPO?
The timing of the reported Lithuanian banking license application comes as Kraken prepares for a possible U.S. initial public offering (IPO), making regulatory expansion a strategic priority.
For public-market investors, banking capabilities and regulatory approvals often serve as signals of operational maturity and risk management.
A European banking license, combined with U.S. payment system access and other international authorizations, could strengthen Kraken’s positioning as it moves closer to traditional financial markets.
Are Crypto Exchanges Becoming Banks?
Rival exchange Coinbase received authorization in the United Kingdom to offer traditional investment products alongside its cryptocurrency services.
This reflects a broader industry shift: major crypto platforms are increasingly seeking banking, payments, and investment capabilities that bring them closer to traditional financial institutions.
As of this report, Kraken’s reported Lithuanian banking application remains unconfirmed by both parties. Kraken has not issued a public statement, and the Bank of Lithuania has not disclosed any pending application.
Why This Matters
The reported Kraken banking license application, if confirmed and approved, would represent a major step in the evolution of crypto exchanges from trading platforms into regulated financial institutions operating within Europe’s banking system.
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People Also Ask:
No. The application is reported by a source familiar with the matter; neither Kraken nor the Bank of Lithuania has confirmed it publicly.
It would potentially allow Kraken to accept deposits, offer lending, and provide other banking products across the EEA through EU passporting rules.
Yes. Revolut received a banking license from the Bank of Lithuania in 2018 and used it to expand banking services across the EEA.