Payward, the parent company of cryptocurrency exchange Kraken, has filed an application with the U.S. Office of the Comptroller of the Currency (OCC) for a national trust company charter. If approved, the plan would establish Payward National Trust Company to provide fiduciary custody and related services primarily for digital assets, signaling a step toward deeper integration with traditional banking infrastructure for crypto firms.
In a Friday notice, Payward said the OCC charter, if granted, would build on its current Special Purpose Depository Institution (SPDI) status established in Wyoming through Kraken Financial, and on its Federal Reserve master account, which gives it access to the U.S. payment system. The move aligns with a regulatory trend that has already seen the OCC grant similar charters to other digital-asset firms and marks a potential shift in how crypto firms access insured custody and standard banking rails.
A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” Kraken co-CEO Arjun Sethi said. “This is not about being first; it is about getting the framework right so markets can scale with clarity, interoperability, and long-term vision for what clients will demand as these systems mature.”
The OCC’s actions to date have drawn scrutiny as it weighs applications from a mix of crypto incumbents. Earlier, the agency approved national trust charters for Ripple Labs, BitGo, Circle, Fidelity Digital Assets and Paxos in December, part of a broader push to formalize the custody and banking infrastructure underpinning digital assets. The agency’s leadership, including Jonathan Gould, Trump-era nominee who heads the OCC, has attracted attention for deploying charters in this sector while considering other high-profile filings, such as World Liberty Financial’s crypto-related bid.
Payward notes that the OCC application would extend the capabilities of Kraken Financial, the Wyoming-SPDI subsidiary, and would complement its existing Federal Reserve master account access. The charter would, in effect, aim to bridge the gap between digital-asset custody and the traditional financial system, providing a regulated framework that institutions often require for scale and interoperability.
Kraken’s broader growth ambitions and regulatory context
While the OCC process unfolds, Kraken’s parent company has been actively pursuing growth through other avenues, hinting at a broader strategy that goes beyond custody. In May, Kraken’s leadership indicated the firm could pursue a U.S. initial public offering (IPO) in the coming years—an aspiration the executives described as being “about 80% ready” to realize by 2027, contingent on market conditions and regulatory clarity. That timeline aligns with the company’s recent activity in expanding its service footprint, including partnerships and acquisitions intended to broaden its product suite beyond spot trading and into custody, derivatives and cross-border settlement.
The same period saw Kraken exiting an array of strategic deals. Payward announced the BitNominal acquisition to expand its derivatives capabilities in the U.S., and it has also disclosed a separate agreement related to Reap, a move that underscores the exchange’s push into crypto-asset offerings that require more sophisticated market infrastructure and risk management. These developments sit alongside Kraken’s broader plan to participate in the evolving ecosystem where custody, settlement, and compliance form the backbone of institutional-grade crypto services.
Kraken’s strategy also interacts with a regulatory backdrop that has become increasingly influential for crypto firms seeking to scale in the United States. The OCC’s willingness to extend charters to a growing set of digital-asset firms signals a potential path to a more formalized banking relationship for crypto companies. Still, the approvals have coincided with ongoing scrutiny over the pace and nature of such charters, particularly as the regulator weighs applications from a spectrum of players with varying business models and risk profiles. Observers will be watching how these titling decisions affect custody standards, customer protection, and the reliability of settlement rails as crypto markets mature.
What to watch next for custody, banking rails, and the crypto market
As Payward’s OCC filing proceeds, investors and users should monitor several lanes of development. First, the fate of the national trust charter itself will shape how other crypto firms structure custody and fiduciary services—potentially lowering conversion frictions for institutions seeking insured, regulated custody arrangements. Second, regulators’ evolving stance on crypto banking infrastructure—especially the interplay between SPDI-like structures and Fed settlement accounts—could influence the cost and timeliness of on- and off-ramps for institutional participants. Third, Kraken’s broader growth plan, including any public listing timeline and the success of its acquisitions and partnerships, will affect the company’s ability to finance its expansion and compete for custody, derivatives, and cross-border services in a crowded market.
Market participants should also note the tension between rapid innovation and regulatory oversight. While the OCC’s track record in approving trust charters for some major players signals a pathway for legitimate crypto custody services, policymakers continue to weigh consumer protection, anti-money-laundering controls, and systemic risk considerations. The coming months should reveal how these factors shape the trajectory of Kraken and similar firms as they seek greater alignment with traditional financial rails while preserving the benefits of decentralized finance and digital-asset innovation.
As this regulatory journey unfolds, observers should keep an eye on any updates around the OCC’s assessments, the timeline for Payward’s charter decision, and the implications for custody standards across digital assets. The outcome could influence a broader shift in how crypto firms access banking services and custody infrastructure, potentially altering the competitive landscape for U.S.-based exchanges and the institutions that serve them.
