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Cryptocurrency platform Kraken is reportedly on the verge of obtaining a banking license in Europe. A source close to the situation told CoinDesk that the company is considering Lithuania as the optimal jurisdiction for registering a full-fledged bank. If the application is approved, Kraken will become a pioneer among crypto exchanges in Europe, gaining the right not only to trade digital assets but also to provide traditional banking services such as account opening, lending, payments, and securities transactions.

Kraken's strategy echoes the experience of fintech company Revolut, which received a similar license in Lithuania in 2018, allowing it to expand its services to clients in the European Economic Area. Kraken appears to be aiming to replicate this success, capitalizing on Lithuania's regulatory expertise and its openness to innovative projects. The exchange and the Lithuanian regulator declined to comment, confirming the confidentiality of the licensing process.

Lithuania has already established itself as an attractive hub for fintech companies seeking access to the European market. In addition to Revolut, banks such as Mano Bank, PayRay, European Merchant Bank (EMBank), AB Fjord Bank, and Saldo Bank operate in the country. This demonstrates a well-developed regulatory environment, which likely inspires Kraken confidence in the predictability of the process.

However, obtaining a European license is only one component of the global expansion of parent company Payward. In March, Kraken Financial received access to the US Federal Reserve's payment infrastructure, and in May of this year, it received a VARA license in the UAE, opening up new markets. These steps are in line with Kraken's strategy to obtain licenses in key global regions over the next decade, as previously stated by the company's co-CEO.

Kraken's successful licensing will set an important precedent for the crypto industry. The exchange will be able to compete with traditional banks by offering clients hybrid services. This will signal to the European market the growing integration of digital assets into the financial system and will allow Kraken to attract the attention of institutional investors.