Payward Eyes Global Banking Expansion Beyond Kraken Exchange

Payward, the parent company of crypto exchange Kraken, is exploring a path to becoming a full bank outside the United States, according to co-CEO Dave Ripley. The effort would expand Kraken’s payments, lending, yield and custody offerings beyond its exchange business.

Payward’s broader financial-services plans

In an interview with The Block, Ripley outlined plans to expand payments, lending, yield generation and asset custody services beyond the US market. Payward is also building a wealth management business and shifting its infrastructure into a modular platform, according to the report.

The company aims to make that infrastructure available to banks, brokerages and fintech companies that want to integrate crypto-related services into their own applications without building the underlying technology themselves. The strategy would move Payward beyond a pure-play exchange toward a broader financial-services provider.

Ripley did not provide a target date for obtaining a bank charter or launching the new services. The timing of the company’s plans remains unclear.

Why the focus is outside the US

Payward’s focus on markets outside the US comes as crypto banking efforts face regulatory uncertainty in the country. By targeting international jurisdictions, the company may be seeking a more favorable regulatory environment while positioning itself for possible future opportunities in the US if the landscape changes.

Separate reporting, citing a person familiar with the matter, identified Lithuania as a possible target for a European banking license. A Kraken spokesperson did not respond to a request for comment in that report, while the Bank of Lithuania said licensing processes for financial-market participants are confidential. The status and timeline of any potential application were not made public.

Lithuania has issued banking or specialized bank licenses to several financial firms, and Revolut received a specialized banking license from the Bank of Lithuania in 2018. That license allowed Revolut to offer current accounts, consumer lending and stock trading across the European Economic Area.

Kraken’s existing regulatory footprint

Kraken already operates Kraken Financial, a Wyoming-chartered bank serving institutional clients. The structure provides regulated custody and deposit services while keeping customer assets separate, according to separate reporting.

Kraken Financial has also launched qualified custody through Kraken Institutional, an offering aimed at institutions seeking infrastructure for storing and managing digital assets. The custody platform connects with Kraken’s wider product ecosystem, allowing clients to manage transfers and other crypto activities through a unified interface.

What a bank charter could mean

A bank charter could allow Kraken to offer federally insured deposits, access payment rails and provide other services that are unavailable to most crypto exchanges. For customers, that could create a more integrated connection between traditional financial services and digital assets, including activities such as paying bills or receiving direct deposits.

The potential expansion could also appeal to institutional investors that have been hesitant to engage with crypto because of a lack of regulated, bank-like infrastructure. If successful, Payward’s transition could set a precedent for other crypto exchanges seeking to broaden their service offerings.

Regulatory requirements remain central

The path to full bank status is complex. Banking licenses require capital reserves, risk-management standards and compliance with anti-money-laundering laws. Regulatory approval processes can take years, and Payward may need to adapt its plans to legal frameworks in different jurisdictions.

Payward’s exploration reflects a broader trend among crypto firms seeking bank charters or partnerships with traditional financial institutions. Whether the company can translate its plans into a full banking operation will depend on regulatory decisions and the development of its financial-services platform.

What comes next

The key details remain the timing of Payward’s potential licensing efforts and the jurisdictions in which it will pursue them. For now, Ripley has described plans to broaden the company’s services beyond the US while building infrastructure that other financial institutions can use in their own applications.

The outcome will depend on how Payward navigates licensing requirements and whether it can develop the broader payments, lending, yield, custody and wealth-management services it has outlined.