Kraken’s European Banking Bet Faces a Tough Balance Sheet Test
Payward agreed to buy Lithuania’s Saldo Bank, with closing expected in 2027 if regulators approve the deal [50379]. Saldo had €196.9 million in assets at the end of June, and a separate report said the bank returned to profit in 2025 as deposits and lending expanded [50379][49841]. Another report said loan impairment charges absorbed most of Saldo’s pre-impairment operating profit and that Payward may need additional capital for its European lending plans [49841].
What this rests on
What it means
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Customers and counterparties tied to Saldo and Payward would notice that the bank deal is not immediate: the closing target is 2027 and it still depends on regulatory approval. That means the change in ownership is on a long timeline rather than something already completed.
Before this, Saldo was already reporting profit in 2025 and growing deposits and lending, but its operating result was heavily reduced by loan impairment charges. In practice, that leaves the lending business active, while the financing side of Payward’s European expansion is still described as possibly needing more capital.
Market reaction
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Has this happened before?
| When | What happened | Figure |
|---|---|---|
| 8 days ago | Incorrect Margin information displayed in APP and Web. event | 1 actors in common · 2 news media |
| 12 days ago | Payward Connects Kraken Prime to Singapore Gulf Bank Settlement Network event | 1 actors in common · 8 news media |