Payward Seeks National Trust Charter from OCC to Expand Kraken's Banking Capabilities
Kraken's parent firm has submitted an application to federal banking regulators that would enable it to function more like a traditional US financial institution, offering regulated custody and services for digital assets.
The parent company behind cryptocurrency exchange Kraken, known as Payward, has revealed that it submitted a formal request to the Office of the Comptroller of the Currency (OCC) in the United States for a charter as a national trust company, joining several other digital asset firms in this endeavor.
According to a statement released on Friday, Payward indicated that securing approval for the OCC application would lead to the creation of Payward National Trust Company, which would enable the firm to "provide fiduciary custody and other services primarily for digital assets." This application positions the company behind Kraken among a select group of cryptocurrency businesses advancing toward traditional banking operations, joining the ranks of Coinbase and other firms that have received OCC authorization.
"A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody. 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."
Kraken co-CEO Arjun Sethi
Under the leadership of Jonathan Gould, nominated by US President Donald Trump, the OCC granted similar charter requests to Ripple Labs, BitGo, Circle, Fidelity Digital Assets and Paxos during December. The regulatory agency has faced increasing examination regarding these approvals while it reviews a pending application from World Liberty Financial, a cryptocurrency venture co-founded by Trump alongside his sons.
Based on information from Payward, the submission to the OCC would expand upon its existing Special Purpose Depository Institution that was established in Wyoming via Kraken Financial. Additionally, the company maintains a Federal Reserve master account, which provides it with direct access to the payment services system in the United States.
Kraken still eyeing public offering after confidential filing
Despite the fact that the parent company of the crypto exchange has successfully completed acquisition transactions with Bitnominal and revealed plans to acquire Reap, Kraken may continue to pursue an initial public offering (IPO) on US markets. In May, Sethi stated that the company had reached approximately "80% ready" status to launch its public offering by 2027, making this announcement concurrent with the exchange's disclosure of a partnership arrangement with MoneyGram.