Crypto exchange Kraken is looking to widen its financial services footprint as it reportedly seeks a European banking license, with Lithuania understood to be the focus jurisdiction, according to CoinDesk.

The reported plan would push the crypto exchange further into regulated finance as it builds out its licensing strategy across major markets.

Kraken has not confirmed the plan, while the Bank of Lithuania does not comment on specific licensing reviews for financial market participants.

A European banking license could give Kraken more room to offer financial services in the region, depending on the scope and conditions of any approval.

The reported plan follows recent regulatory progress for Kraken’s parent company Payward.

In March, Kraken Financial gained access to the US Federal Reserve’s payment infrastructure through a limited-purpose master account.

The approval gave its banking unit access to core US payment rails, though it did not provide full banking privileges.

Payward also secured authorisation from Dubai’s Virtual Assets Regulatory Authority in May, allowing Kraken to provide regulated virtual asset services in the emirate subject to VARA’s conditions.

Kraken CEO Arjun Sethi has previously linked banking licenses to the company’s long-term expansion strategy, including through acquisitions or new applications in different markets.

Featured image: Edited by Fintech News Switzerland, based on image by alidrian via Magnific