Payward Files for National Trust Bank Charter

Key Takeaways

Payward (Kraken) has applied for an OCC national trust company charter to offer institutional custody.

The move builds on the success of Kraken Financial, the firm’s Wyoming-chartered SPDI bank.

A federal charter would establish Kraken as a “qualified custodian” for nationwide institutional clients.

Payward, the team behind the Kraken exchange, is going all in on its plan to become a fully regulated financial player. This past Friday, the company announced it has officially applied for a national trust company charter with the Office of the Comptroller of the Currency.

If the OCC gives the green light, it would allow Kraken to offer high-level, bank-grade custody services to big institutional clients across the country. This move is a clear signal that Kraken is moving beyond retail trading to capture the growing demand from institutions that require federally regulated partners. By securing an OCC charter, Payward aims to provide a “gold standard” for digital asset custody that meets the strict requirements of major financial entities.

Securing Federal Oversight: The Move Toward a National Trust Charter

The proposed Payward National Trust Company is designed to complement Kraken’s existing banking infrastructure. Currently, the firm operates Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution (SPDI) that holds a coveted Federal Reserve master account.

However, a national trust charter provides a layer of federal recognition that simplifies operations across state lines. Co-CEO Arjun Sethi emphasized that transparent regulation is the only viable path forward for the digital asset industry. This “complementary pillar” strategy aims to build a bridge between traditional banking and the digitally native financial system of the future.

Strategic Expansion and the Path to Public Listing

Kraken’s regulatory push comes amid a flurry of corporate activity. The firm has been on an aggressive acquisition spree, recently spending $600 million on stablecoin firm Reap Technologies and $550 million on derivatives exchange Bitnomial.

These moves are widely seen as preparation for an impending IPO, following a massive $800 million funding round that valued the company at $20 billion. As the OCC shows a renewed willingness to charter crypto-native entities, joining the likes of Circle and Fidelity, Kraken is positioning itself to be one of the most compliant and comprehensive financial service providers in the United States.

Final Thoughts

Kraken’s banking strategy is a sophisticated play for institutional dominance, proving that the future of crypto belongs to those who embrace regulation.