- Payward applied for an OCC national trust charter to offer federally regulated digital asset custody services.
- Charter would expand Kraken’s banking strategy beyond its Wyoming SPDI and Federal Reserve access.
- Company continues infrastructure growth through acquisitions and broader stablecoin payment expansion globally.
Kraken’s parent company, Payward, has applied for a national trust company charter with the U.S. Office of the Comptroller of the Currency. The application would create Payward National Trust Company, a federally regulated entity focused on digital asset custody services. According to the company, the move expands Kraken’s regulated banking strategy after securing a Wyoming SPDI charter and Federal Reserve master account access.
Payward Expands Federal Custody Strategy
Payward said the proposed trust company would mainly serve institutional clients seeking regulated digital asset custody services. In addition, the entity would also support individual customers requiring bank-level custody protections.
According to Payward, the OCC application builds on Kraken Financial, its Wyoming Special Purpose Depository Institution launched in 2020. Kraken Financial later became the first crypto-focused banking unit to secure access to Federal Reserve payment rails.
Arjun Sethi, co-CEO of Payward and Kraken, said the company views regulation as essential for long-term digital asset growth. He stated that a national trust charter would provide institutions with greater regulatory clarity and custody certainty.
Meanwhile, the OCC charter would place Payward under a single federal regulator for custody and asset management operations. That structure could reduce reliance on state-by-state licensing requirements across the United States.
OCC Application Arrives During Industry Expansion
Payward’s filing comes as several crypto firms pursue deeper access into the federal banking system. According to the OCC, crypto and fintech firms continue exploring trust bank structures under growing federal oversight.
Jonathan Gould, the OCC comptroller nominee, previously said new entrants strengthen financial competition and modernize banking services. However, national trust charters still require firms to satisfy compliance reviews and capital requirements.
Notably, Anchorage Digital remains the only crypto-native company operating as a fully approved national trust bank. Other applicants continue navigating regulatory examinations before reaching full operational status.
Kraken Builds Broader Financial Infrastructure
Alongside the OCC filing, Payward recently expanded its regulated financial operations through additional acquisitions. In April, the company agreed to acquire crypto derivatives platform Bitnomial for up to $550 million.
This week, Payward also announced a $600 million deal for Hong Kong-based payments company Reap Technologies. The acquisition expands Kraken’s stablecoin payment and cross-border infrastructure operations in Asia.
Meanwhile, Payward confidentially filed for a potential public offering after raising $800 million at a $20 billion valuation last year.
