Kraken is reportedly pursuing a full banking license in Europe, with Lithuania being considered as the jurisdiction for the application, according to CoinDesk. The exchange has not announced an approval, so the clearest verified reading is that this is a regulatory push in progress rather than a completed bank launch.

The move would fit Kraken's broader strategy of building licensed financial infrastructure around its crypto exchange business. In Europe, Kraken already lists an Irish e-money institution license and MiCA crypto-asset service provider authorization through entities regulated by the Central Bank of Ireland. The company has also said its Irish e-money license lets it expand euro fiat services in partnership with European banks across the EU and EEA.

A full banking license would be a different step. It could give Kraken a deeper regulated footing for payments, custody, and fiat account services in Europe, depending on the scope of any approval and the exact license type. It would also place the exchange closer to the regulated-finance model it has pursued in the U.S., where Kraken Financial operates under a Wyoming special purpose depository institution charter.

The timing is notable because Europe is tightening crypto-market access under MiCA. Exchanges now face a clearer licensing perimeter, and firms that can combine crypto authorization with bank-grade payment infrastructure may have an advantage with institutional clients. For now, the important detail is not that Kraken is becoming a European bank today, but that it appears to be trying to add bank licensing to a growing stack of regulated crypto infrastructure.