Payward, the parent company of the cryptocurrency exchange Kraken, has submitted an application for a national trust company charter to the U.S. Office of the Comptroller of the Currency (OCC). This initiative aims to enhance its regulated digital-asset custody services.
If granted, the charter would establish the Payward National Trust Company (PNTC), a federally regulated entity dedicated to fiduciary custody and related services for digital assets. The trust is expected to cater primarily to institutions and clients looking for bank-level custody protections under OCC oversight.
This application reflects Payward’s ongoing strategy to broaden its regulatory presence in the U.S., as cryptocurrency firms increasingly seek traditional financial charters to attract institutional clients and adapt to changing regulations.
“A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” stated Arjun Sethi, Co-CEO of Payward and Kraken.
The move aligns with a trend among crypto companies pursuing federal charters and licenses, particularly following the Trump administration’s more favorable stance on digital-asset regulation.
Payward’s expansion strategy includes several acquisitions aimed at developing a robust regulated trading and payments infrastructure in anticipation of a potential initial public offering (IPO). Recently, the company acquired retail futures platform NinjaTrader for $1.5 billion and agreed to purchase crypto derivatives exchange Bitnomial for up to $550 million, securing a comprehensive suite of Commodity Futures Trading Commission (CFTC) licenses.
Additionally, Payward finalized a $600 million deal to acquire Hong Kong-based payments firm Reap Technologies, furthering Kraken’s efforts in stablecoin-powered cross-border payments and card infrastructure in Asia.
The proposed trust company would complement Kraken Financial, which holds a special purpose depository institution (SPDI) charter from Wyoming, obtained in 2020. Kraken Financial was the first digital-asset bank to secure a Federal Reserve master account, allowing it direct access to the U.S. payments system.
Payward views the OCC application as part of a broader “multi-charter” strategy designed to offer various regulated financial services under both state and federal oversight. The PNTC would leverage Payward’s existing compliance, risk management, and custody infrastructure while broadening access for clients in need of a federally regulated qualified custodian.
As the regulatory landscape for digital assets continues to evolve, crypto firms are increasingly exploring bank and trust charters. National trust charters, overseen by the OCC, have become a pathway for crypto-native companies seeking legitimacy and the ability to operate nationwide without relying solely on state-by-state licensing.
Sethi emphasized that the Wyoming SPDI and the prospective OCC trust charter would serve as “complementary pillars” of Payward’s banking strategy as regulations surrounding digital assets develop.
Payward has applied for a national trust company charter to enhance its digital-asset custody services through Kraken. The move reflects a broader strategy to expand its regulatory presence and attract institutional clients in a changing regulatory environment.