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Kraken parent goes for the OCC charter in bid to become a federal crypto bank
TL;DR
Payward, the parent company of Kraken, has applied for a national trust company charter with the OCC to expand its regulated digital-asset custody business. If approved, it will create Payward National Trust Company, focusing on fiduciary custody for digital assets.
Key points
- Payward applied for a national trust company charter with the OCC
- The charter aims to enhance digital-asset custody services
- Payward National Trust Company would serve institutions and customers
- The move aligns with a trend of crypto firms seeking federal charters
- It reflects a shift towards more regulated digital-asset services
Mentioned in this story
PaywardKrakenU.S. Office of the Comptroller of the Currency
Payward, the parent company of crypto exchange Kraken, has applied for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC), according to a Friday announcement shared with CoinDesk, as the company looks to expand its regulated digital-asset custody business.
If approved, the charter would establish Payward National Trust Company (PNTC), a federally regulated entity focused on fiduciary custody and related services for digital assets. Kraken said the trust would primarily serve institutions and customers seeking bank-level custody protections under OCC oversight.
The filing marks Payward’s latest effort to expand its U.S. regulatory footprint as crypto firms increasingly pursue traditional financial charters to attract institutional clients and navigate a shifting regulatory environment.
“A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” Payward and Kraken Co-CEO Arjun Sethi said in the statement.
The move comes as crypto firms increasingly seek federal charters, licenses and banking approvals under the Trump administration’s more industry-friendly approach to digital-asset regulation.
Kraken’s broader expansion strategy has included a string of acquisitions aimed at building regulated trading and payments infrastructure ahead of a potential IPO.
In addition to its $1.5 billion acquisition of retail futures platform NinjaTrader in 2025, Payward agreed in April to acquire crypto derivatives exchange Bitnomial for up to $550 million, adding a full suite of Commodity Futures Trading Commission (CFTC) licenses covering brokerage, clearing and exchange operations.
This week, the company also struck a $600 million deal to buy Hong Kong-based payments firm Reap Technologies, expanding Kraken’s push into stablecoin-powered cross-border payments and card infrastructure in Asia
The proposed trust company would complement Kraken Financial, the Wyoming special purpose depository institution (SPDI) chartered in 2020. Kraken Financial became the first digital-asset bank to secure a Federal Reserve master account, giving it direct access to the U.S. payments system.
Q&A
What is the purpose of Payward's application for a national trust company charter?
Payward aims to establish a federally regulated entity to enhance its digital-asset custody services for institutions and customers.
How would the OCC charter benefit Kraken and its customers?
The charter would provide bank-level custody protections under OCC oversight, attracting institutional clients and ensuring regulatory compliance.
What does the establishment of Payward National Trust Company signify for the crypto industry?
It reflects a growing trend among crypto firms to seek federal charters and licenses to navigate regulatory challenges and expand their services.
