Kraken Reportedly Seeking Full EU Banking License Via Lithuania

Kraken Reportedly Seeking Full EU Banking License Through Lithuanian Passporting Route

• Kraken has reportedly filed an application with the Bank of Lithuania for a full banking license, according to a source familiar with the matter.
• Approval would position Kraken as the first major cryptocurrency exchange to hold comprehensive banking authorization within the European Economic Area (EEA).
• The license would enable banking services across the EU member states, Iceland, Liechtenstein, and Norway via regulatory passporting mechanisms.
• Neither Kraken nor the Bank of Lithuania has publicly confirmed the application as of publication.

Kraken, the San Francisco-based cryptocurrency exchange, is reportedly pursuing a full banking license from Lithuania’s central bank, a move that could establish the platform as the first major crypto firm to achieve full banking status in Europe. Such authorization would expand its operations beyond cryptocurrency trading and custody into regulated financial services across the EEA, leveraging Lithuania’s passporting framework to bypass the need for country-specific licenses.

This strategic pivot aligns with Kraken’s broader efforts to integrate traditional financial infrastructure into its ecosystem. If realized, the license could allow Kraken to offer lending products, accept deposits, and provide institutional banking services in compliance with EU regulations. Fintech pioneer Revolut previously utilized this approach after securing Lithuania’s support in 2018, enabling pan-EEA expansion through a single regulatory approval.

The initiative coincides with Kraken’s push toward global regulatory compliance ahead of a planned IPO. Recent milestones include direct access to the U.S. Federal Reserve’s payment system in March 2026 and authorization from the UAE’s Virtual Assets Regulatory Authority for Payward, Kraken’s parent company. CEO Arjun Sethi has emphasized regulatory diversification as central to the company’s 10-year growth strategy.

Why Lithuania for Banking Regulatory Access?

Lithuania’s reputation as a fintech-friendly EEA member state makes it a strategic gateway for EU market expansion. By securing a banking license here, Kraken could immediately extend services across all EEA countries without repeating regulatory processes in each jurisdiction—a significant efficiency gain compared to fragmented, nation-by-nation approvals.

Crypto Exchanges Transition to Traditional Financial Services

Kraken’s reported move mirrors industry trends among major exchanges. Competitor Coinbase has already expanded into traditional investment products in the UK, signaling a broader shift toward hybrid models blending crypto and conventional finance. Such integrations aim to fortify crypto platforms’ legitimacy while attracting institutional investors requiring familiar compliance frameworks.

Implications for Eurozone Cryptocurrency Regulation

Should the application proceed, it would mark a critical step toward harmonized crypto-banking regulation in Europe. While unconfirmed by Kraken or the Lithuanian regulator, the effort underscores the sector’s maturation and its ambition to compete with traditional banks by adopting their structural and operational norms.

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People Also Ask:
Is it confirmed that Kraken applied for a banking license in Lithuania?
No. The application is reported by a source familiar with the matter; neither Kraken nor the Bank of Lithuania has confirmed it publicly.

What would a Lithuanian banking license let Kraken do?
It would potentially allow Kraken to accept deposits, offer lending, and provide other banking products across the EEA through EU passporting rules.

Has any other crypto or fintech company used this route before?
Yes. Revolut received a banking license from the Bank of Lithuania in 2018 and used it to expand banking services across the EEA.

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