Payward, the parent company of the cryptocurrency exchange Kraken, has officially submitted an application for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). This move aims to strengthen its regulated digital-asset custody services.
Establishment of Payward National Trust Company
If the OCC approves the application, Payward National Trust Company (PNTC) will be created. This federally regulated entity will specialize in fiduciary custody and related services for digital assets. Kraken intends to offer bank-level custody protections to institutions and clients under OCC supervision.
Strengthening Regulatory Footprint
This filing represents a strategic step for Payward to enhance its U.S. regulatory presence. As the crypto industry increasingly embraces traditional financial charters, Payward aims to attract institutional clients amid evolving regulations.
Arjun Sethi, Co-CEO of Payward and Kraken, emphasized the need for a national trust company, stating that it would provide the necessary certainty for institutions and lay the groundwork for building next-gen custody services.
Broader Expansion Strategy
Payward’s ambition parallels a trend where crypto firms actively seek federal charters and banking licenses. Notably, under the Trump administration, there was a more favorable approach to digital-asset regulation.
This initiative is part of Kraken’s larger strategy of growth, which includes a series of acquisitions designed to develop regulated trading and payments infrastructure. Highlights of this strategy include:
- $1.5 billion acquisition of retail futures platform NinjaTrader in 2025.
- Purchase of Bitnomial: A crypto derivatives exchange for up to $550 million, which will provide a complete suite of CFTC licenses.
- $600 million deal to acquire Reap Technologies, a payments firm based in Hong Kong, focusing on stablecoin-powered payments in Asia.
Complement to Existing Operations
The proposed trust company will enhance Kraken Financial, which was established in Wyoming as a special purpose depository institution (SPDI) in 2020. Kraken Financial was the first digital asset bank to acquire a Federal Reserve master account, ensuring direct payments system access in the U.S.
Payward’s OCC application signifies a part of its multi-charter strategy, promoting a variety of regulated financial services under both state and federal jurisdictions. The new company would leverage Payward’s existing compliance, risk management, and custody systems, broadening access for clients in need of regulated custodial services.
Future of Cryptocurrency Regulation
The exploration of bank and trust charters has gained momentum among crypto firms as regulatory clarity emerges regarding custody and institutional engagement in digital assets. National trust charters, overseen by the OCC, are a pathway for crypto firms seeking legitimacy and nationwide operational capabilities, minimizing reliance on state licenses.
Sethi highlighted that the Wyoming SPDI and the proposed OCC trust charter would function as “complementary pillars” in Payward’s evolving banking strategy as the regulatory landscape for digital assets continues to change.
