Kraken’s parent company explores becoming a full bank outside the U.S.

Kraken’s parent company eyes banking license outside the U.S.

Payward, the parent company of the cryptocurrency exchange Kraken, is exploring the possibility of becoming a full bank outside the United States. The move aims to expand its financial services beyond crypto trading into areas like asset management and traditional banking.

Dave Ripley, co-CEO of Payward and Kraken, told The Block that the company is looking into obtaining a full banking license in other regions, though he did not specify which countries or licenses are being considered. Ripley explained that the company is focusing on three main areas: trading, banking, and asset management.

What Payward hopes to achieve

• Payward wants to offer banking services like payments, lending, yield, and custody.
• The company already operates Kraken Financial, a Wyoming-based bank that provides digital asset custody and deposit accounts for institutions.
• A full banking license outside the U.S. could allow Payward to offer more services to a broader range of customers.
• Future services might include mortgages, according to Mark Greenberg, Payward’s Chief Commercial Officer.

Kraken Financial’s current limitations

Kraken Financial, which launched in March 2024, is a Special Purpose Depository Institution (SPDI)—a type of bank that can hold digital assets but has restrictions. For example, it cannot lend customers’ traditional money (fiat) and is not insured by the FDIC, unlike conventional banks.

Earlier this year, Kraken Financial received a limited-purpose Federal Reserve master account, allowing it to connect to parts of the central bank’s payment system. This was the first such approval for a crypto company.

What is confirmed

• Payward is exploring the possibility of becoming a full bank outside the U.S.
• The company is focusing on trading, banking, and asset management as key areas for expansion.
• Kraken Financial already operates as a Wyoming-chartered bank but with limited services.
• Payward executives have publicly discussed these plans, but no specific jurisdictions or licenses have been named.

What is still unclear

• Which countries or regions Payward is targeting for a full banking license.
• When or if these plans will move forward.
• Whether the company will eventually seek a full banking license in the U.S.

Why this could matter for crypto users

If Payward succeeds in becoming a full bank outside the U.S., it could offer more financial services to its customers, such as loans, mortgages, and traditional banking products. This would make it easier for users to manage both crypto and traditional money in one place.

However, the company has not yet announced a timeline or specific locations for these plans, so it remains unclear when or how these services might become available.

Sources

• The Block