Current Status of the Lithuanian License
Published 7/8/2026, 10:40:01 AM
Kraken’s pursuit of a Lithuanian banking license represents a significant step in its global strategy to integrate traditional financial rails with digital assets. While obtaining this license would make Kraken the first major global cryptocurrency exchange to hold a full European banking license, it would not technically be Europe's first "crypto-native bank."
Current Status of the Lithuanian License
As of July 2026, Kraken is in the process of applying for a full European banking license in Lithuania. The application is currently in a confidential stage, and a formal acceptance or specific processing timeline has not been publicly confirmed by the Bank of Lithuania [Source: https://www.reuters.com/technology/kraken-ceo-outlines-global-licensing-strategy-2026-06-10/].
This move follows Kraken's broader strategy of securing high-tier regulatory approvals, similar to its success in the United States where Kraken Financial operates as a Special Purpose Depository Institution (SPDI) and gained access to the Federal Reserve's Fedwire system in March 2026 [Source: https://blog.kraken.com/news/federal-reserve-master-account].
Regulatory Scope: EMI vs. Full Banking License
A full banking license in Lithuania would grant Kraken capabilities that far exceed its current Electronic Money Institution (EMI) and Crypto-Asset Service Provider (CASP) authorizations under MiCA.
| Feature | Current Scope (MiCA/EMI) | Future Scope (Full Banking License) |
|---|---|---|
| Primary Regulator | Central Bank of Ireland / CySEC | Bank of Lithuania |
| Core Services | Crypto trading, custody, e-money | Deposit-taking, consumer lending |
| Payment Rails | Indirect (via third-party partners) | Direct access to SEPA/Eurosystem |
| Passporting | 27 EU Member States (MiCA) | 27 EU Member States (Full Banking) |
| Status | Operational | Application Stage (Confidential) |
Is Kraken Europe's First Crypto-Native Bank?
The claim that Kraken would be the "first" crypto-native bank in Europe is contested by the existence of established Swiss institutions:
- Sygnum & Amina Bank: Both institutions have held full banking licenses from Switzerland’s FINMA since August 2019. Sygnum, for instance, reported managing over $6 billion in assets as of early 2024 [Source: https://www.sygnum.com/news/sygnum-announces-fy2024-results/] [Note: $6 billion AUM figure not independently confirmed].
- Distinction in Origin: While Sygnum and Amina were founded as banks for the digital asset economy, Kraken is a "crypto-first" exchange transitioning into banking. If successful, Kraken would be the first global exchange to successfully bridge this gap in the European Economic Area (EEA).
Strategic Context
The Lithuanian license would allow Kraken to offer full current accounts and lending products directly to its European users, removing reliance on intermediary banks. This aligns with CEO Arjun Sethi’s stated 10-year plan to secure full licenses in every major operating region [Source: https://www.reuters.com/technology/kraken-ceo-outlines-global-licensing-strategy-2026-06-10/]. Additionally, Kraken recently expanded its global footprint by securing VARA authorization in the UAE in May 2026 [Source: https://blog.kraken.com/news/uae-vara-authorization].
Conclusion: Kraken's Lithuanian license would likely make it the first major global exchange to operate as a full bank in the EU, but it follows in the footsteps of Swiss crypto-native banks that have held similar licenses for several years. The exact operational start date remains open pending regulatory approval.