Payward, the parent company of crypto exchange Kraken, has formally applied to the U.S. Office of the Comptroller of the Currency for a national trust company charter. If approved, Payward National Trust Company would operate as a federally regulated entity focused on digital asset custody services. The application extends Kraken's regulated banking strategy beyond its existing Wyoming Special Purpose Depository Institution charter and Federal Reserve master account access.
Federal Single Regulator for Custody Operations
Payward said the proposed trust company would primarily serve institutional clients seeking regulated digital asset custody, while also supporting individual customers requiring bank-level protections. Unlike the current patchwork of state-level licenses, an OCC national trust charter would place custody and asset management operations under a single federal regulator, reducing compliance burdens across multiple states.
Arjun Sethi, co-CEO of Payward and Kraken, said the company views regulation as essential for long-term growth. He noted that a national trust charter would provide institutions with greater regulatory clarity and custody certainty. “Compliance is not an obstacle—it’s a prerequisite for trust,” Sethi stated.
Building on Kraken Financial's Foundation
The OCC application builds on Kraken Financial, the Wyoming SPDI launched in 2020, which became the first crypto-focused banking unit to gain access to Federal Reserve payment rails. Payward said the federal charter would give Kraken a regulatory status comparable to major custodial banks at the national level.
Notably, only Anchorage Digital currently operates as a fully approved national trust bank among crypto-native firms. Other applicants remain under regulatory review. OCC comptroller nominee Jonathan Gould previously said new entrants strengthen financial competition, but noted that national trust charters require firms to satisfy compliance reviews and capital requirements.
Acquisitions and Global Expansion
Alongside the OCC filing, Payward has been expanding its regulated financial operations through acquisitions. In April, the company agreed to acquire crypto derivatives platform Bitnomial for up to $550 million. This week, Payward announced a $600 million deal for Hong Kong-based payments firm Reap Technologies, which will enhance Kraken's stablecoin payment and cross-border infrastructure in Asia.
Payward also confidentially filed for a potential public offering after raising $800 million at a $20 billion valuation last year. These moves signal Payward's transition from a pure crypto exchange toward a fully compliant financial group.
If the OCC charter is granted, it could further break down barriers between digital assets and the traditional banking system, providing institutional capital with a more compliant custody pathway.