Kraken Pursues Landmark European Banking License
Kraken’s most recent leap is part of the company’s strategy of global expansion with regulatory approvals across different regions.
Kraken Targets EU Banking License to Offer Traditional Financial Services
Kraken, one of the leading cryptocurrency exchanges, is reported to seek a full European banking license in Lithuania.
If Kraken manages to obtain the credentials, it will become the first crypto exchange to hold a full European banking license.
A full banking license will allow Kraken to launch fiat accounts, payment services, and traditional financial products to all 27 EU member states plus Iceland, Liechtenstein, and Norway.
Kraken Seeks Full Banking License to Strengthen EU Operations
Reported by a source familiar with the company’s roadmap, Kraken’s plans to obtain a full banking license represents an important step in bridging the gap between legacy banking and digital assets. If the Bank of Lithuania approves Kraken’s license application, the company will be able to offer fully regulated and native commercial banking and financial services across the entire European Economic Area (EEA). In that case, Kraken will not have to obtain individual permits from local regulators.
Kraken’s venture into the banking sector is aimed towards unifying its services under a single roof. The strategy arrives at a time when the EU’s Markets in Crypto-Assets (MiCA) framework is fully activated, where holding banking licenses provides significant competitive advantage over standard crypto-only licenses. In a similar vein to Kraken, Ripple has recently received a full MiCA authorization, which will allow the company to offer services to all EEA member states.
Why Crypto Companies Are Racing to Secure European Licenses
The main reason why Web3 companies and crypto exchanges are aiming to obtain European banking licenses is the EU’s Markets in Crypto-Assets (MiCA) regulation, which became fully effective after the transition period ended on July 1, 2026. MiCA foresees a single regulatory framework across all member states instead of different regulations for each country. The MiCA license offers a major advantage: it can be “passported” across the EEA, and allow companies to offer regulated crypto services in multiple countries without applying for separate licenses in each one. Companies that fail to comply risk losing access to the EU market, the most notable example being Binance suspending crypto services in EU markets due to its failure to obtain a MiCA license.
Kraken Advances Global Banking Strategy with European Expansion
Kraken currently conducts its fiat euro operations with an e-money authorization from the Central Bank of Ireland. While the Electronic Money Institution (EMI) license facilitates euro transfers, it lacks broader operational capabilities introduced by a full banking license. In addition to handling traditional currencies, Kraken can now use its Ireland-based MiCA registration and Cyprus-issued MiFID derivatives license across the entire EU. If Kraken also adds a full banking license to its credentials, it could create a fully integrated financial platform for institutional clients, offering banking, payments, crypto, and trading services all in one system.
Kraken’s expansion into European banking is part of a long-term strategy by its parent company, Payward, to connect directly with major financial systems around the world. In March 2026, Kraken Financial became the first digital asset bank to receive a limited-purpose master account from the US Federal Reserve, which made it possible for the company to settle US dollar transactions directly through the Fedwire system without relying on commercial banks. Two months later, Payward received full approval from Dubai’s Virtual Assets Regulatory Authority (VARA), serving to expand its presence in the Middle East. Together with its planned banking operations in Europe, these developments could help Kraken build a regulated financial network linking the US, Europe, and the Middle East for institutional clients.