Kraken is seeking to become a bank in Europe, marking another step in the exchange’s push to move deeper into regulated financial services.

The crypto exchange is focusing on Lithuania as the jurisdiction for the license, CoinDesk reported, citing a person familiar with the plans. The move would add a European banking layer to Kraken’s existing regulatory footprint across the region.

Kraken already holds MiCA authorization through the Central Bank of Ireland and a MiFID license through Cyprus, allowing it to offer regulated services across the EU. 

The exchange has been using that status to position itself as a licensed platform for European users after MiCA enforcement began across the bloc on July 1.

A banking license would further expand Kraken’s ability to connect crypto trading with traditional financial rails. It would also give the company a stronger position as exchanges compete to offer custody, payments and institutional services under clearer regulatory frameworks.

The European push comes alongside Kraken’s broader effort to integrate with the banking system. In the US, Kraken Financial became the first crypto firm to receive access to the Federal Reserve’s core payments system earlier this year, giving its banking arm direct access to Fedwire for certain services.