Payward, the parent company of cryptocurrency exchange Kraken, has formally applied for a national trust company charter with the US Office of the Comptroller of the Currency (OCC), marking the latest effort by a digital asset firm to move closer to traditional banking infrastructure.
What the OCC application means for Kraken and its users
In a notice issued Friday, Payward said the application, if approved, would establish Payward National Trust Company, a federally regulated entity authorized to provide fiduciary custody and other services primarily for digital assets. The move aligns Kraken with a growing list of crypto companies that have secured similar approvals from the OCC, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos.
Also read: Ethics standoff threatens Senate progress on CLARITY Act crypto bill ahead of Thursday markup
Kraken co-CEO Arjun Sethi framed the application as a structural necessity rather than a race. “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” 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.”
The OCC, currently led by President Donald Trump’s nominee Jonathan Gould, approved similar charter applications for Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos in December 2025. The agency has faced increased scrutiny over these approvals, particularly as it considers an application from World Liberty Financial, the crypto company co-founded by Trump and his sons.
Also read: Circle stock surges 15% after strong earnings, $222M ARC token presale fuels stablecoin optimism
Building on existing state-level banking infrastructure
Payward’s OCC application builds on its existing Special Purpose Depository Institution in Wyoming, operated through Kraken Financial. The company also holds a Federal Reserve master account, granting it direct access to the US payment services system. These credentials position Kraken as one of the more deeply integrated crypto firms within the US financial system, even as it pursues federal-level recognition.
The application comes amid a broader push by Kraken to expand its institutional footprint. The company recently closed its acquisition of Bitnomial, a derivatives trading platform, and announced an agreement to buy Reap, a payment processing firm. These moves suggest a strategy focused on building a full-service financial ecosystem rather than relying solely on spot trading revenue.
Kraken’s IPO timeline and market positioning
Despite these acquisition-driven expansions, Kraken may still be preparing for a public listing. Sethi stated in May that the company was “about 80% ready” to go public by 2027, following the exchange’s confidential IPO filing. A partnership with MoneyGram, announced around the same time, further signals Kraken’s intent to bridge digital assets with traditional payment rails.
The OCC charter application represents a significant regulatory milestone for Payward. If approved, it would grant Kraken a federal trust license, allowing it to offer custody services under uniform national standards rather than managing a patchwork of state regulations. This could make Kraken more attractive to institutional clients seeking regulated digital asset storage.
Why this matters for the broader crypto industry
The OCC’s willingness to approve trust charters for multiple crypto firms signals a gradual normalization of digital assets within the US banking system. Each approval sets a precedent, potentially accelerating the integration of crypto services into mainstream finance. However, the agency’s approval of politically connected entities has drawn criticism, raising questions about the consistency of its regulatory approach.
For Kraken, the application is a strategic hedge. By securing federal trust status, the exchange can offer regulated custody services that meet institutional compliance requirements, potentially unlocking demand from pension funds, endowments, and asset managers who have been cautious about crypto exposure.
Conclusion
Payward’s OCC charter application is a measured but consequential step toward integrating Kraken into the US banking system. It reflects a broader trend of crypto companies seeking federal regulatory approval to offer traditional financial services, and it positions Kraken to compete more directly with regulated custodians. The outcome of the application will be closely watched as a signal of the OCC’s evolving stance on digital assets under the current administration.
FAQs
Q1: What is an OCC national trust charter?
A national trust charter from the Office of the Comptroller of the Currency allows a company to operate as a federally regulated trust bank, offering fiduciary and custody services. For crypto firms, this means they can hold digital assets on behalf of clients under uniform national standards.
Q2: How does this affect Kraken users?
If approved, the charter would allow Kraken to offer federally regulated custody services, which may attract institutional clients seeking higher compliance standards. Retail users may see expanded product offerings and potentially greater regulatory protections over time.
Q3: Which other crypto companies have received OCC trust charters?
Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos have all received OCC approval for trust charters. The approvals were announced in December 2025 under OCC head Jonathan Gould.
Be the first to comment